Exercise 6-9 Record transactions using a perpetual system L06-5) IThe following

Question

Exercise 6-9 Record transactions using a perpetual system L06-5) IThe following information applies to the questions displayed below.j Littleton Books has the following transactions during May. May 2 Purchases books on account from Readers Wholesale for $3,000, terms 3/10, n/30 May 3 Pays cash for freight costs of $170 on books purchased from Readers May 5 Returns books with a cost of $300 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 $3.700 on account References

Explanation / Answer

1) May-02 Inventory 3000 Accounts payable 3000 May-03 Inventory 170 Cash 170 May-05 Accounts payable 300 Inventory 300 May-10 Accounts payable 2700 Inventory 81 Cash 2619 May-30 Accounts receivable 3700 Sales 3700 Cost of goods sold (3000+170-300-81) 2789 Inventory 2789 2) May-24 Accounts payable 2700 Cash 2700

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