Refer to Exercise 5-2 and prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system is used by both the buyer and the seller. (Skip the part 3 requirement.)

Exercise 5-2

Refer to Exercise 5-4 and prepare the appropriate journal entries for DeSoto Co. to record the May 5 purchase and each of the three separate transactions a through

c. DeSoto is a retailer that uses a perpetual inventory system and purchases these units for resale.

Exercise 5-4

Spare Parts was organized on May 1, 2005, and made its first purchase of merchandise on May 3. The purchase was for 1,000 units at a price of \($10\) per unit. On May 5, Spare Parts sold 600 of the units for \($14\) per unit to DeSoto Co. Terms of the sale were 2/10, n/60. Prepare entries for Spare Parts to record the May 5 sale and each of the following separate transactions a through c using a perpetual inventory system.