Mom & Pop Shop uses the periodic inventory system.
Below are information for the month of May 2020.
May 1st. Purchased merchandises, on account, from Costco,
valued at $25,000. FOB Destination for $600 was paid by cash
and by the responsible party. Credit terms were 3/10, n/30.
May 6th. Mom & Pop Shop returned merchandises to Costco,
valued at $5,000.
May 10th. Mom & Pop Shop settled the account.
Prepare the 3 journal entries in the Diagonal Box
for Mom & Pop Shop