(P4) Periodic vs. perpetual inventory systems A company has the following 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 28 Sells all inventory purchased on March 3 for $5,000 on account. Instruction) a Record all transactions, assuming the company uses a perpetual inventory system. b Record all transactions, assuming the company uses a periodic inventory system