EX 4-2 pg 193

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

Debit Account Payable-Frist Credit Merchandise Inventory

Sent check to Frist paying for the April 18 purchase, net of the discount and allowance.

Debit Accounts Payable- Frist 7400 Credit Merchandise Inventory 148 Credit Cash 7252

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

Debit Accounts Payable-Lyon Credit Merchandise Inventory

Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise

Debit Accounts Payable-Lyon Credit Merchandise Inventory Credit Cash

Purchased merchandise from Frist Corp. under the following terms: $8,500 price, invoice dated April 18, credit terms of 2/10, n/30, and FOB destination.

Debit Merchandise Inventory Credit Accounts Payable

Purchased merchandise from Lyon Company under the following terms: $4,600 price, invoice dated April 2, credit terms of 2/15, n/60, and FOB shipping point.

Debit Merchandise Inventory Credit Accounts Payable

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

Debit Merchandise Inventory Credit Cash