Refer to the transactions in E6-7.
In E7
May 2 Purchases books on account from Readers Wholesale for $2,300, terms 2/10, n/30.
May 3 Pays freight costs of $100 on books purchased from Readers.
May 5 Returns books with a cost of $300 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 $3,000 on account.
Required:
1. Record the transactions of Littleton Books, assuming the company uses a periodic inventory system.
2. Record the period-end adjustment to cost of goods sold on May 31, assuming the company has no beginning or ending inventory.