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[The following information applies to the questions displayed below.] Littleton Books has the following...

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Accounting

[The following information applies to the questions displayed below.]

Littleton Books has the following transactions during May.

May 2 Purchases books on account from Readers Wholesale for $2,900, terms 2/10, n/30.
May 3 Pays cash for freight costs of $160 on books purchased from Readers.
May 5 Returns books with a cost of $250 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 $3,600 on account.

Required:

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

2. Record purchase of books on account from Readers Wholesale for $2,900, terms 2/10, n/30.

3. Record payment of cash for freight costs of $160 on books purchased from Readers.

4. Record return of books with a cost of $250 to Readers because part of the order is incorrect.

5.Record payment of the full amount due to Readers.

6. Record the sale of inventory on account.

7. Record cost of inventory sold.

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