Accounting Test 11/23/2015

17 Sent a check to Lyon Co for the April 2 purchase, net of the discount and the returned merchandise. Paid $4600 - 600 (returned good) = 4000 x 2% = 80 4000 - 80 = 3920

17 Accounts Payable 4000 Merchandise Inventory 80 Cash 3920

18 Purchased merchandise from Frist Corp. under the following terms: $8500 price, invoice dated Apr 18, credit terms of 2/10, n/30, FOB destination.

18 Merchandise Inventory 8500 Accounts Payable 8500

Purchased merchandise from Lyon Company under the following terms: $4600 price, invoice date April 2, credit terms 2/15, n/60, and FOB shipping point.

2 Merchandise Inventory 4600 Accounts Payable 4600

21 After negotiations, received from Frist a $1,100 allowance on the April 18 purchase.

21 Sales Return and Allowances 1100 Accounts Payable 1100

28 Sent check to Frist paying for the April 18 purchase, net of the discount and allowance. Paid $8500 - 1100 = $7400 x 2% = 148 7400 - 148 = 7252

28 Accounts Payable 7400 Merchandise Inventory 148 Cash 7252

3 Paid $300 for shipping charges on the April 2 purchase.

3 Merchandise Inventory 300 Cash 300

4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $600.

4 Accounts Payable- 600 Merchandise Inventory 600