The University of Saskatchewan Bookstore (the bookstore) sellstextbooks to students. At the beginning of May, the bookstore hasno textbooks in inventory. During May, the bookstore purchasestextbooks for Intro to Financial Accounting (accounting). Thebookstore uses a perpetual FIFO system to track inventory. Recordthe journal entries the bookstore should make on each day listedbelow.
May1 Purchased and received 50 accounting textbooks from McGraw Hill ata cost of $100 per book under terms 2/10, n/30.
May3 The bookstore realized all 50 of the books purchased on May 1 weremissing the pages for Chapter 7, so the bookstore paid anadditional $5 cash per book to Book Repairs Inc. to add in themissing pages.
May4 Based on the issue encountered on May 3, the bookstore sends acomplaint to McGraw Hill. In response, McGraw Hill reduces theprice of each book purchased on May 1 by $10.
May 6 The bookstore pays McGraw Hillthe amount it owes for the May 1 books.
May 8 The bookstore sells 45accounting textbooks to students for $150 cash per book.
May 9 After the first day of class,three (3) of the students realize the accounting professor is a bitstrange, and they decide to drop the class. Each of these threestudents returns their accounting textbook to the bookstore, and inreturn, they each receive a $150 bookstore giftcard.
May 12 Thebookstore receives another 40 accounting textbooks from McGraw Hillat a cost of $110 per book under terms n/30.
May14 The bookstore sells another 20 accounting textbooks to students for$150 cash per book.
May25 McGraw Hill releases a brand-new edition of the accountingtextbook; as such, demand for the accounting textbooks purchasedduring May has declined. To compensate, the bookstore reduces theprice of each of its May accounting books to $95, as this is allcustomers are willing to pay.
May31 After performing the month-end inventory count, the bookstorerealizes two (2) of the accounting textbooks have been stolen.