Answer:
April 02
Dr Merchandise inventory4,600
Cr Accounts payable—Lyon 4,600
April 03
Dr Merchandise inventory300
Cr Cash300
April 04
Dr Accounts payable—Lyon600
Cr Merchandise inventory600
April 17
Dr Accounts payable—Lyon 4,000
Cr Merchandise inventory80
Cr Cash3,920
April 18
Merchandise inventory8,500
Accounts payable—Frist8,500
April 21
Dr Accounts payable—Frist 1,100
Cr Merchandise inventory 1,100
April 28
Dr Accounts payable—Frist7,400
Cr Merchandise inventory 148
Cr Cash 7,252
Explanation:
Preparation of the journal entries
April 02
Dr Merchandise inventory4,600
Cr Accounts payable—Lyon 4,600
April 03
Dr Merchandise inventory300
Cr Cash300
April 04
Dr Accounts payable—Lyon600
Cr Merchandise inventory600
April 17
Dr Accounts payable—Lyon 4,000
Cr Merchandise inventory80
[($4,600 − $600) × 2%]
Cr Cash3,920
(4,000-80)
April 18
Merchandise inventory8,500
Accounts payable—Frist8,500
April 21
Dr Accounts payable—Frist 1,100
Cr Merchandise inventory 1,100
April 28
Dr Accounts payable—Frist7,400
Cr Merchandise inventory 148
(2%*7400)
Cr Cash 7,252
(7,400-148)
