6.3 Merchandise transactions - Periodic inventory system (1) A company has the following inventory transactions during May: May 3: Purchases inventory on account for $3,500, terms 2/10, n/30. May 5: Pays freight costs of $200 on inventory purchased on May 3. May 6: Returns inventory with a cost of $500. May 12: Pays the full amount due on May 3 purchase. May 25: Sells all inventory purchased on May 3(less those returned on May 6) for $5,000 on account. Required: Record all transactions, assuming the company uses a periodic inventory system