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.