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Question - John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May:
-John's purchased merchandise on account for $5,200. Freight charges of $400 were paid in cash.
-John's returned some of the merchandise purchased in (1). The cost of the merchandise was $700 and John's account was credited by the supplier.
-Merchandise costing $2,900 was sold for $5,400 in cash.
Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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