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Littleton Books has the following transactions during May. May 2 Purchases books on account from Readers Wholesale for $4,200, terms 2/10, n/30. May 3 Pays cash for freight costs of $290 on books purchased from Readers. May 5 Returns books with a cost of $350 to Readers because part of the order is incorrect. May 10 Pays the full amount due to Readers. May 30 Sells all books purchased on May 2 (less those returned on May 5) for $4,900 on account. Required: 1. Record the transactions of Littleton Books, assuming the company uses a periodic inventory system.
Littleton Books has the following transactions during May. May 2 Purchases books on account from Readers Wholesale for $4,200, terms 2/10, n/30. May 3 Pays cash for freight costs of $290 on books purchased from Readers. May 5 Returns books with a cost of $350 to Readers because part of the order is incorrect. May 10 Pays the full amount due to Readers. May 30 Sells all books purchased on May 2 (less those returned on May 5) for $4,900 on account. Required: 1. Record the transactions of Littleton Books, assuming the company uses a periodic inventory system.
If Littleton Books has the followingtransactionsduring May. May 2Purchasesbooks on account from ReadersWholesalefor $4,200, terms 2/10, n/30. The journalentriesfor Littleton Books, assuming the company uses aperiodic inventorysystem are:Littleton Booksjournal entriesMay 2Debit Inventory $4,200Credit Accounts Payable $4,200(To recordpurchaseon account)May 3Debit Freight Inward $290Credit Cash $290(To record payment offreight cost)May 5Debit Accounts payable $350Credit Inventory $350(To recordpurchase return)May 10Debit Accounts payable $3,850($4,200-$350)Credit Cash $3,773[($4,200-$350)×98%]Credit Inventory $77[($4,200-$350)×2%](To record amountpaid)May 30Debit Accounts receivable $4,900Credit Sales revenue $4,900(To recordcredit sales)May 30Debit Cost of good sold $4,063Credit Inventory $4,063($4,200+$290-$350-$77)(To recordInventory)Learn more here:brainly.com/question/24167894...