Partners Wholesale has the following transactions during the month of May 2021:

May 1	Purchased inventory from Bob Inc. for $15,000, FOB destination, terms 2/10 N/30.
May 2	The appropriate company paid $100 freight on the May 1 purchase.
May 6	Returned $3,000 worth of goods to Bob as they were the wrong colour.
May 7	Sold half of the remaining inventory purchased from Bob to Carol Inc. for $10,000, FOB destination, terms 2/20 N/30.
May 8	The appropriate company paid $60 freight on the May 7 sale.
May 10	Paid Bob the entire amount owed to him.
May 12	Purchased inventory worth $8,000 from Ted Inc., FOB shipping point, terms 3/15 N/45.
May 13	The appropriate company paid $40 freight on the May 12 purchase.
May 17	Sold half of the inventory purchased from Ted to Alice Ltd. For $8,000, FOB shipping point, terms 1/10 N/20.
May 18	The appropriate company paid $50 freight on the May 17 sale.
May 22	Alice returned $1,000 worth of the goods she bought on May 17 as you shipped her the wrong size.
May 25	Alice paid her outstanding balance.
May 30	Carol paid her outstanding balance.
May 31	Paid Ted the entire amount owed to him.

1. How would Partners Wholesale record the May 1 transaction?

a. Increase both Accounts Payable and Inventory

b. Increase both Purchases and Inventory

c. Increase both Accounts Payable and Inventory Expense

d. Increase both Purchases and Inventory Expense

e. Increase both Accounts Payable and Purchases

Enter the letter that corresponds to your choice. (A B C D E)

2. How would Partners Wholesale record the May 2 transaction?

a. Increase both Inventory and Accounts Payable

b. Increase Freight Expense and decrease Cash

c. Increase both Freight Expense and Accounts Payable

d. Increase both Inventory and Freight Expense

e. No entry is required.

Enter the letter that corresponds to your choice. (A B C D E)

3. How would Partners Wholesale record the May 6 transaction?

a. Decrease both Purchases and Inventory Expense

b. Decrease Inventory and increase Purchase Returns

c. Decrease both Accounts Payable and Inventory

d. Decrease both Accounts Payable and Inventory Expense

e. Decrease Accounts Payable and increase Purchase Returns

Enter the letter that corresponds to your choice. (A B C D E)

4. How would Partners Wholesale record the May 7 transaction?

a. Increase Sales and Accounts Receivable $6,000 each, and increase Cost of Goods Sold and decrease Inventory $10,000 each

b. Increase Sales and Accounts Receivable $10,000 each, and increase Cost of Goods Sold and decrease Inventory $10,000 each

c. Increase Sales and Accounts Receivable $10,000 each

d. Increase Sales and Accounts Receivable $10,000 each, and increase Cost of Goods Sold and decrease Inventory $6,000 each

e. Increase Cost of Goods Sold and decrease Inventory $6,000 each

Enter the letter that corresponds to your choice. (A B C D E)

5. How would Partners Wholesale record the May 8 transaction?

a. Increase both Accounts Payable and Freight Expense

b. Decrease Cash and increase Freight Expense

c. Decrease both Cash and Inventory

d. Decrease both Cash and Inventory

e. No entry is required

Enter the letter that corresponds to your choice. (A B C D E)

6. How would Partners Wholesale record the May 10 transaction?

a. Decrease Cash, Inventory, and Accounts Payable.

b. Decrease Cash and Accounts Payable, and increase Inventory.

c. Decrease Cash and Inventory, and increase Accounts Payable.

d. Decrease Cash and increase both Inventory and Accounts Payable.

e. Decrease Cash and Accounts Payable only.

Enter the letter that corresponds to your choice. (A B C D E)

7. How much does Partners Wholesale pay Bob on May 10?

8. How would Partners Wholesale record the May 12 transaction?

a. Increase both Purchases and Inventory Expense

b. Increase both Accounts Payable and Purchases

c. Increase both Purchases and Inventory

d. Increase both Accounts Payable and Inventory

e. Increase both Accounts Payable and Inventory Expense

Enter the letter that corresponds to your choice. (A B C D E)

9. How would Partners Wholesale record the May 13 transaction?

a. Increase Inventory and decrease Cash

b. Increase Freight Expense and decrease Cash

c. Increase both Inventory and Accounts Payable

d. Increase both Freight Expense and Inventory

e. No entry is required.

Enter the letter that corresponds to your choice. (A B C D E)

10. How would Partners Wholesale record the May 17 transaction?

a. Increase Cost of Goods Sold and decrease Inventory $4,000 each

b. Increase Sales and Accounts Receivable $8,000 each

c. Increase Sales and Accounts Receivable $4,000 each, and increase Cost of Goods Sold and decrease Inventory $8,000 each

d. Increase Sales and Accounts Receivable $8,000 each, and increase Cost of Goods Sold and decrease Inventory $8,000 each

e. Increase Sales and Accounts Receivable $8,000 each, and increase Cost of Goods Sold and decrease Inventory $4,000 each

Enter the letter that corresponds to your choice. (A B C D E)

11. How would Partners Wholesale record the May 18 transaction?

a. Decrease Cash and increase Inventory

b. Decrease Cash and increase Freight Expense

c. Increase both Accounts Payable and Freight Expense

d. Decrease both Cash and Inventory

e. No entry is required.

Enter the letter that corresponds to your choice. (A B C D E)

12. How would Partners Wholesale record the May 22 transaction?

a. Increase Inventory and decrease Cost of Goods Sold $1,000 each, and decrease Accounts Receivable and increase Sales Returns $1,000 each

b. Increase Inventory and decrease Cost of Goods Sold $500 each, and decrease Accounts Receivable and increase Sales Returns $1,000 each

c. Increase Inventory and decrease Cost of Goods Sold $500 each, and decrease Accounts Receivable and increase Sales Returns $500 each

d. Increase Inventory and decrease Cost of Goods Sold $500 each

e. Decrease Accounts Receivable and increase Sales Returns $1,000 each

Enter the letter that corresponds to your choice. (A B C D E)

13. How would Partners Wholesale record the May 25 transaction?

a. Increase Cash and decrease Accounts Receivable only

b. Increase Cash and decrease Sales Discounts (increasing net sales), and decrease Accounts Receivable

c. Increase Cash and Sales Discounts (reducing net sales), and decrease Accounts Receivable

d. Increase Cash and decrease both Sales and Accounts Receivable

e. Increase both Cash and Sales, and decrease Accounts Receivable

Enter the letter that corresponds to your choice. (A B C D E)

14. How much does Alice pay Partners Wholesale on May 25?

15. How would Partners Wholesale record the May 30 transaction?

a. Increase Cash and decrease Accounts Receivable only

b. Increase Cash and decrease both Sales and Accounts Receivable

c. Increase both Cash and Sales, and decrease Accounts Receivable

d. Increase Cash and increase Sales only

e. Increase both Cash, Sales, and Accounts Receivable

Enter the letter that corresponds to your choice. (A B C D E)

16. How much does Carol pay Partners Wholesale on May 30?

17. How would Partners Wholesale record the May 31 transaction?

a. Decrease Cash and Accounts Payable, and increase Inventory.

b. Decrease Cash and Inventory, and increase Accounts Payable.

c. Decrease Cash and increase both Inventory and Accounts Payable.

d. Decrease Cash and Accounts Payable only

e. Decrease Cash, Inventory, and Accounts Payable.

Enter the letter that corresponds to your choice. (A B C D E)

18. How much does Partners Wholesale pay Ted on May 31?