Journalizing purchase and sale transactions [10-15 min]
Consider the following transactions that occurred in May 2012 for High Roller, Inc.
May 1 | Purchased $3,000 of inventory from P&M terms 1/10, n/20. |
3 | Sold $3,500 of goods to Frames R Us, Inc., terms 2/10, n/eom. *(Cost $2,240). |
5 | Frames R Us, returned $300 of goods (Cost $198). |
11 | Paid P&M. |
13 | Received payment from Frames R Us. |
Requirements
1. What type of inventory system is High Roller using-periodic or perpetual?
2. Which transaction date helped you decide?
3. Journalize May transactions for High Roller. No explanations are required.
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