Reference no: EM132736982
Question - Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters' ledger showed Cash of $10,400 and Common Stock of $10,400.
May 1 Purchased merchandise on account from Black Wholesale Supply for $8,050, terms 1/10, n/30.
May 2 Sold merchandise on account for $4,400, terms 2/10, n/30. The cost of the merchandise sold was $3,300.
May 5 Received credit from Black Wholesale Supply for merchandise returned $350.
May 9 Received collections in full, less discounts, from customers billed on May 2.
May 10 Paid Black Wholesale Supply in full, less discount.11Purchased supplies for cash $1,170.
May 12 Purchased merchandise for cash $4,030.
May 15 Received $299 refund for return of poor-quality merchandise from supplier on cash purchase.
May 17 Purchased merchandise from Wilhelm Distributors for $2,350, terms 2/10, n/30.
May 19 Paid freight on May 17 purchase $325.
May 24 Sold merchandise for cash $7,150. The cost of the merchandise sold was $5,330.
May 25 Purchased merchandise from Clasps Inc. for $1,040, terms 3/10, n/30.
May 27 Paid Wilhelm Distributors in full, less discount.
May 29 Made refunds to cash customers for returned merchandise $135. The returned merchandise had cost $91.
May 31 Sold merchandise on account for $1,664, terms n/30. The cost of the merchandise sold was $1,079.
Required - Journalize the transactions using a perpetual inventory system.