ACCOUNTING CH6 Questions 8-9 (of 17) The following information applies to the qu

Question

ACCOUNTING CH6 Questions 8-9 (of 17) The following information applies to the questions displeyed below Littleton Books has the following transactions during May on account from Readers Wholesale for $2,700, terms 210, n/30. May 2 Purchases books on account from Readers Wholesale for $2700, May 3 Pays freight costs of $140 on books purchased from Readers May 5 Returns books with a cost of 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 $3,400 on account. value: 10.00 points Required 1. Record the transactions of Littleton Books, assuming the company uses a periodic inventory system. (I no entry is required for a transaction/event, select "No journal entry required" in the first accour field.)

Explanation / Answer

Journal Entries :

may 2 inventory A/c 1400

to Accounts payable 1400

may 3 Inventory A/c 240

to cash A/c 240

may 5 Accounts payable a/c 400

To Inventory 400

may 10 Accounts payable A/c 1000

To Inventory 10

To cash 990

may 30   

Accounts Recievable A/c 2000

To Sales Revenue 2000

may 30 cost of goods sold 1230

To inventory 1230

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