Question - Purchased merchandise from Blue Company under the following terms: $5,600 price, invoice dated April 2, credit terms of 2/15, n/60, and FOB shipping point.
3 Paid $314 for shipping charges on the April 2 purchase.
4 Returned to Blue Company unacceptable merchandise that had an invoice price of $500.
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: $11,650 price, invoice dated April 18, credit terms of 2/10, n/30, and FOB destination.
21 After negotiations, received from Fox a $3,262 allowance on the April 18 purchase.
28 Sent check to Fox paying for the April 18 purchase, net of the discount and allowance.
Required - Prepare journal entries to record the above transactions for a retail store. Assume a perpetual inventory system.