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

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.

Record all of the transactions into the expanded accounting equation, with account names, and then answer the following questions

Record all of the transactions into the expanded accounting equation, with account names, and then answer the following questions.

Question 45 (1 point)

How would Partners Wholesale record the May 1 transaction?

Increase both Purchases and Inventory Expense

1. Increase both Accounts Payable and Purchases

2. Increase both Purchases and Inventory

3. Increase both Accounts Payable and Inventory Expense

4. Increase both Accounts Payable and Inventory