Record the transactions of littleton books

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Reference no: EM131521088

Question: Refer to the transactions in E6-7.

Required: 1. Record the transactions of Littleton Books, assuming the company uses a periodic inventory system.

2. Record the period-end adjustment to cost of goods sold on May 31, assuming the company has no beginning or ending inventory.

E6-7: Littleton Books has the following transactions during May.

May 2 Purchases books on account from Readers Wholesale for $2,300, terms 2/10, n/30.

May 3 Pays freight costs of $100 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 $3,000 on account.

Required: 1. Record the transactions of Littleton Books, assuming the company uses a perpetual inventory system.

2. Assume that payment to Readers is made on May 24 instead of May 10. Record this payment.

Reference no: EM131521088

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