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Purchased merchandise from Blue Company under the following terms

Price: $2.99


E5-1 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.

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