Suppose Peter's Hardware sells merchandise on account, terms 2/10, n/45, for $750 (cost of the inventory is $460) on May 17, 2013. Peter’s Hardware later received $225 of goods (cost, $140) as sales returns on May 21, 2013. The customer paid the balance due on May 26, 2013.
Journalize the May, 2013 transactions, using
(1) The perpetual system
(2) The periodic inventory system, for Peter’s Hardware.