Reference no: EM131680135
Question - Journalize the transactions using a perpetual inventory system.
Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters ledger showed Cash of $8,000 and Common Stock of $8,000.
May 1 Purchased merchandise on account from Black Wholesale Supply for $3,000, terms 1/10, n/30.
May 2 Sold merchandise on account for $4,400, terms HID, mill). The cost ofdie merchandise sold was $3,300.
May 5 Received credit from Black Wholesale Supply for merchandise returned $200.
May 9 Received collections in full, ll- discounts, ?'om customers billed on May 2.
May 10 Paid Black Wholesale Supply in full, less discount.
May 11 Purchased supplies for cash $900.
May 12 Purchased merchandise for cash $3,100.
May 15 Received $230 refund for return of poor-quality merchandise from supplier on cash purchase.
May 17 Purchased merchandise from Wilhelm Distributors for $2,500, terms 2/10, n/30.
May 19 Paid freight on May 17 purchase $250.
May 24 Sold merchandise for cash $5,500. The cost of the merchandise sold was $4,100.
May 25 Purchased merchandise from Clasps Inc. for $800, terms 3/10, n/30.
May 27 Paid Wilhelm Distributors in full less discount
May 29 Made refunds to cash customers for returned merchandise $124. The returned merchandise had cost $90.
May 31 Sold merchandise on account for $1,280, terms n/30. The cost of the merchandise sold was $830.
Winters Hardware's chart accounts includes Cash, Accounts Receivable, Inventory, Supplies, Accounts Payable, Common Stock, Sales Revenue, Sales Returns and Allowances, Sales Discounts, and Cost Goods Sold.