Question $3$

The following transactions occurred for Odin Inc.:

May $1$ Sold inventory on account for $$15,000.$ The inventory cost $$8,000.$ Terms

$\frac{2}{10},\frac{n}{30}.$

May $3$ Purchased inventory on account: $$28,000.$ Terms: $2/10,$ n$/30.$

May $5$ Inventory was returned from the May $1$ sale. The inventory was badly

damaged and was thrown out. A credit of $$2,000$ was given. The inventory

had an original cost of $$1,100.$

May $9$ Received payment for the inventory sold on May $1.$

May $16$ Purchased inventory on account: $$5,000.$ Terms: $1/5,$ n$/15.$

May $18$ Paid freight on May $16$ inventory purchase: $$500.$

May $22$ Sold inventory for $$30,000$ on account. The cost of inventory was

$$11,000.$ Terms $\frac{2}{10},\frac{n}{30}.$

May $24$ Paid for inventory purchase from May $16.$

May $31$ Customer from the May $22$ sale paid the amount owing.

Odin Inc. uses a perpetual inventory system.

Required:

Prepare journal entries based on the transactions above.