Reference no: EM132781126

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.

1. May 1Purchased merchandise on account from Black Wholesale Supply for $8,050, terms 1/10, n/30.
2. 2Sold merchandise on account for $4,400, terms 2/10, n/30. The cost of the merchandise sold was $3,300.
3. 5Received credit from Black Wholesale Supply for merchandise returned $350.
4. Received collections in full, less discounts, from customers billed on May 2.10Paid Black Wholesale Supply in full, less discount.
5. 11Purchased supplies for cash $1,170.
6. 12Purchased merchandise for cash $4,030.
7. 15Received $299 refund for return of poor-quality merchandise from supplier on cash purchase.
8. 17Purchased merchandise from Wilhelm Distributors for $2,350, terms 2/10, n/30.19Paid freight on May 17 purchase $325.
9. 24Sold merchandise for cash $7,150. The cost of the merchandise sold was $5,330.
10. 25Purchased merchandise from Clasps Inc. for $1,040, terms 3/10, n/30.
11. 27Paid Wilhelm Distributors in full, less discount.
12. 29Made refunds to cash customers for returned merchandise $135. The returned merchandise had cost $91.
13. 31Sold merchandise on account for $1,664, terms n/30. The cost of the merchandise sold was $1,079.

Problem 1: Journalize the transactions using a perpetual inventory system.