Prepare the necessary journal entries to record transactions

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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:

1. John's purchased merchandise on account for $5,300. Freight charges of $450 were paid in cash.

2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $750 and John's account was credited by the supplier.

3. Merchandise costing $2,950 was sold for $5,500 in cash.

Required - Prepare the necessary journal entries to record these transactions.

Reference no: EM133128765

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