Question

 Littleton Books has the following transactions during May.

 May 2 Purchases books on account from Readers Wholesale for $2, 600, terms 1/10, n/30.

 May 3 Pays cash for freight costs of $130 on books purchased from Readers.

 May 5 Returns books with a cost of $200 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 $3,300 on account.

 Required:

 1. Record the transactions of Littleton Books, assuming the company uses a periodic inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

	General Journal	Debit	Credit
May 02	Purchases	2600
	Accounts payable		2600
May 03	Freight-in	130
	Cash		130
May 05	Accounts payable	200
	Purchase returns		200
May 10	Accounts payable	2400
	Purchase discounts		24	=2400*1%
	Cash		2376
May 30	Accounts Receivable	3300
	Sales revenue		3300
May 30	NO journal entry required