Respuesta :
Answer:
Explanation:
The journal entries are shown below:
On May 2:
Purchase A/c Dr $4,200
To Accounts Payable A/c $4,200
(Being purchase is made on credit)
On May 3:
Freight Inward A.c Dr $290
To Cash A/c $290
(Being freight expenses are paid in cash)
On May 5:
Accounts payable A/c Dr $350
To Purchase return $350
(Being purchase return is recorded)
On May 10:
Accounts payable A/c Dr $3,850
To Cash A/c $3,773
To Discount $77
(Being full amount is paid and the remaining balance is credited to the cash account)
The discount is computed below:
= (Purchase - purchase return) × discount rate
= ($4,200 - $350) × 2%
= $3,850 × 2%
= $77
On May 30:
Accounts receivable A/c Dr $4,900
To Sales revenue $4,900
(Being sales is recorded)
If Littleton Books has the following transactions during May. May 2 Purchases books on account from Readers Wholesale for $4,200, terms 2/10, n/30. The journal entries for Littleton Books, assuming the company uses a periodic inventory system are:
Littleton Books journal entries
May 2
Debit Inventory $4,200
Credit Accounts Payable $4,200
(To record purchase on account)
May 3
Debit Freight Inward $290
Credit Cash $290
(To record payment of freight cost)
May 5
Debit Accounts payable $350
Credit Inventory $350
(To record purchase return )
May 10
Debit Accounts payable $3,850
($4,200-$350)
Credit Cash $3,773
[($4,200-$350)×98%]
Credit Inventory $77
[($4,200-$350)×2%]
(To record amount paid)
May 30
Debit Accounts receivable $4,900
Credit Sales revenue $4,900
(To record credit sales)
May 30
Debit Cost of good sold $4,063
Credit Inventory $4,063
($4,200+$290-$350-$77)
(To record Inventory)
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