Exercise 4-16a recording purchases, returns, and allowances-periodic lo p5 prepare journal entries to record each of the following merchandising transactions assuming that the buyer uses the periodic inventory system and the gross method. apr. 2 purchased $4,600 of merchandise from lyon company with credit terms of 2/15, n/60, invoice dated april 2, and fob shipping point. 3 paid $300 cash for shipping charges on the april 2 purchase. 4 returned to lyon company unacceptable merchandise that had an invoice price of $600. 17 sent a check to lyon company for the april 2 purchase, net of the discount and the returned merchandise. 18 purchased $8,500 of merchandise from frist corp. with credit terms of 1/10, n/30, invoice dated april 18, and fob destination. 21 after negotiations, received from frist a $500 allowance toward the $8,500 owed on the april 18 purchase. 28 sent check to frist paying for the april 18 purchase, net of the allowance and the discount.