Reference no: EM131797731

Problem

Molly's Greenhouse supplies bedding plants and other gardening products to a variety of stores across Alberta and also has a local greenhouse open to the public. Molly uses a perpetual inventory system. Transactions for the business are shown below:

May Purchased 500 decorative hanging baskets from Planters R Us, on account, at a cost of $20 each, terms 2/10, n/30. FOB shipping point.

3 The correct company paid cash for the $185 shipping charges.

4 Sold 200 hanging baskets to a hardware store in the city, on account, for a total invoice price of $8,000. Terms 1/10, n/30. Molly paid the shipping charge of $75.

5 Received a credit from Planters R Us for the return of 40 hanging baskets that had defective hangers.

7 20 of the baskets from the sale of May 4 were returned to the greenhouse for a full refund because the customer did not have enough room to store them.

12 Made a payment on account for the amount owing to Planters R Us for the purchase of May 2.

14 Received a cheque for the appropriate amount from the hardware store for the purchase of May 4.

Prepare journal entries to record the above transactions using the perpetual method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)