connect TING Chpt 6 HW- Due 03/20/18 Questions 12-13 (of 24)P Exercise 6-9 Recor

Question

connect TING Chpt 6 HW- Due 03/20/18 Questions 12-13 (of 24)P Exercise 6-9 Record transactions using a perpetual system (LO6-5) (The following information applies to the questions displayed below.] Littleton Books has the following transactions during May. May 2 Purchases books on account from Readers Wholesale for $3,300, terms 1/10, n/30. May 3 Pays cash for freight costs of $200 on books purchased from Readers. May 5 Retúrns books with a cost of $400 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 $4,000 on account References Section Break perpetual system (LO6-5) 12. 0.62 points

Explanation / Answer

Journal entry :

2) Journal entry :

Date accounts & explanation debit credit May 2 Merchandise inventory 3300 Account payable 3300 May 3 Merchandise inventory 200 Cash 200 May 5 Account payable 400 Merchandise inventory 400 May 10 Account payable (3300-400) 2900 Cash 2871 Merchandise inventory 29 May 30 Account receivable 4000 Sales revenue 4000 Cost of goods sold 3071 Merchandise inventory 3071

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