Sam Levine Merchandising Had the Following Transactions During May Required:
1

question 79

Essay

Sam Levine Merchandising had the following transactions during May: $\begin{array}{llcc} \text { May 1 } & \text { Beginning inventory w as 20 units v alued at \( \$ 25 \) per unit. } \\ \text { May 5 } & \text {Purchased 80 units of merchandise on account for \( \$ 2,160 \), terms \( n / 15, F O B \) shipping }\\ \text {point. } &\\ \text { May 9 } & \text { Paid transportation cost on the May 5 purchase, \( \$ 240 \). }\\ \text { May 10} & \text { Returned two units of defective merchandise purchased on May 5. }\\ \text {May 11 } & \text {Sold 30 units for \( \$ 50 \) per unit on account. }\\ \text { May 15 } & \text { Paid for the May 5 purchase, less the return. }\\ \text { May 20 } & \text { Sold 10 units for \( \$ 50 \) per unit on account. }\\\end{array}$
Required:
1. Assuming FIFO and that the perpetual inventory system is used, prepare the journal entries to record the above transactions.
2. Assuming weighted-average and that the periodic inventory system is used, prepare the journal entries to record the above transactions.