Ch5: Perpetual and periodic inventory systems
1.	Purchase of inventory: 
-	On May 4, Sauk stereo purchased inventory of $3,800 form PW Audio supply company on account. This inventory cost PW Audio supply $2,400.
2.	Fright cost: تكليف النقل 
A.	On May 6, the responsible company paid freight cost of $150. The fright terms were FOB Shipping point.
   Or
B.	On May 6, the responsible company paid fright cost of $150. The fright terms were FOB destination
3.	Purchase return and allowances:
A.	On May 8, Sauk stereo returned goods that had a selling price of $300 to PW audio Supply. The cost of this returned inventory for PW Audio supply is $140. (assume no defect).
Or
B.	On May 8, Sauk stereo returned goods that had a selling price of $300 to PW audio Supply. The cost of this returned inventory for PW Audio supply is $140. ( goods had some defects and had a fair value of 100).
Or 
C.	On May 8, Sauk Stereo (buyer) received goods that was not as required. However, it chose to keep the goods after being granted a $50 allowance (reduction in price)
4.	Purchase discount 
A.	On May 14, Sauk paid the amount on account. The purchase term was 2/10, n/30.
Or
B.	On May 16, Sauk paid the amount on account. The purchase term was 2/10, n/30.
Required: 
A.	Journalise the previous transactions using perpetual and periodic inventory systems for both the buyer and the seller.