Maia's Bike Shop Uses the Periodic Inventory System and Had

question 177

Essay

Maia's Bike Shop uses the periodic inventory system and had the following transactions during the month of May:
$\begin{array}{|l|l|}\hline \text { May 3 } & \begin{array}{l}\text { Sold merchandise to a customer on credit for } \$ 600, \text { terms } 2 / 10, \mathrm{n} / 30 . \text { The cost of the } \\\text { merchandise sold was } \$ 350 .\end{array} \\\hline \text { May 4 } & \text { Sold merchandise to a customer for cash of } \$ 425 . \text { The cost of the merchandise was } \$ 250 \text {. } \\\hline \text { May 6 } & \begin{array}{l}\text { Sold merchandise to a customer on credit for } \$ 1,300, \text { term } 2 / 10, \mathrm{n} / 30 . \text { The cost of the } \\\text { merchandise sold was } \$ 750 .\end{array} \\\hline \text { May 8 } & \begin{array}{l}\text { The customer from May } 3 \text { returned merchandise with a selling price of } \$ 100 . \text { The cost of } \\\text { merchandise returned was } \$ 55 .\end{array} \\\hline \text { May 15 } & \text { The customer from May } 6 \text { paid the full amount due, less any appropriate discounts earned. } \\\hline \text { May 31 } & \text { The customer from May } 3 \text { paid the full amount due, less any appropriate discounts earned. }\\\hline \end{array}$
Prepare the required journal entries that Maia's Bike Shop must make to record these transactions.

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