Purchased merchandise from Lyon Company under the following terms: $4,100 price

Apr. 2	Purchased merchandise from Lyon Company under the following terms: $4,100 price, invoice dated April 2, credit terms of 2/15, n/60, and FOB shipping point.
3	Paid $230 for shipping charges on the April 2 purchase.
4	Returned to Lyon Company unacceptable merchandise that had an invoice price of $800.
17	Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.
18	Purchased merchandise from Frist Corp. under the following terms: $8,650 price, invoice dated April 18, credit terms of 2/10, n/30, and FOB destination.
21	After negotiations, received from Frist a $2,422 allowance on the April 18 purchase.
28	Sent check to Frist paying for the April 18 purchase, net of the discount and allowance.

  

Prepare journal entries to record the above transactions for a retail store. Assume a perpetual inventory system.

Explanation:

Apr 17: Paid balance (less 2%) within discount period = $66 = ($4,100 − $800) × 2%.

Apr 28: Paid balance (less 2%) within discount period = $125 = ($8,650 − $2,422) × 2%.