E6-9 Littleton Books has the following transactions during May May 2 Purchases books on account from Readers Wholesale for $3,300, terms 1/10, n/30. May 3 Pays cash for freight costs of $200 on books purchased from Readers. May 5 Returns books with a cost of $400 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 $4,000 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.

Littleton Books

Journal Entries:

May 2 Debit Inventory $3,300

Credit Accounts Payable (Readers Wholesale) $3,300

To record the purchase of books on account, terms 1/10, n/30.

May 3 Debit Freight-in $200

Credit Cash $200

To record the freight paid for the books of May 2.

May 5 Debit Accounts Payable (Readers Wholesale) $400

Credit Inventory $400

To record the return of some books.

May 10 Debit Accounts Payable (Readers Wholesale) $2,900

Credit Cash $2,871

Credit Cash Discounts $29

To record the full settlement on account, including discounts.

May 30 Debit Accounts Receivable $4,000

Credit Sales Revenue $4,000

To record the sale of books on account.

Debit Cost of goods sold $2,900

Credit Inventory $2,900

To record the cost of books sold.

May 24 Debit Accounts Payable (Readers Wholesale) $2,900

Credit Cash $2,900

To record the full settlement on account.

Explanation:

a) Data and Analysis:

May 2 Inventory $3,300 Accounts Payable (Readers Wholesale) $3,300

terms 1/10, n/30.

May 3 Freight-in $200 Cash $200

May 5 Accounts Payable (Readers Wholesale)  $400 Inventory $400

May 10 Accounts Payable (Readers Wholesale) $2,900 Cash $2,871 Cash Discounts $29

May 30 Accounts Receivable $4,000 Sales Revenue $4,000

Cost of goods sold $2,900 Inventory $2,900

May 24 Accounts Payable (Readers Wholesale) $2,900 Cash $2,900

answerattainable;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.