Evaluate net of the discount and allowance

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Reference no: EM131532980

Question: Prepare journal entries to record the following transactions for a retail store. Assume a perpetual inventory system. Apr. 2 Purchased merchandise from Blue Company under the following terms: $3,600 price, invoice dated April 2, credit terms of 2y15, ny60, and FOB shipping point. 3 Paid $200 for shipping charges on the April 2 purchase. 4 Returned to Blue Company unacceptable merchandise that had an invoice price of $600. 17 Sent a check to Blue Company for the April 2 purchase, net of the discount and the returned merchandise. 18 Purchased merchandise from Fox Corp. under the following terms: $7,500 price, invoice dated April 18, credit terms of 2y10, ny30, and FOB destination. 21 After negotiations, received from Fox a $2,100 allowance on the April 18 purchase. 28 Sent check to Fox paying for the April 18 purchase, net of the discount and allowance.

Reference no: EM131532980

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