Reference no: EM132986349
Crane Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Crane showed Cash of $ 5,000 and Owner's Capital of $ 5,000.
May 1Purchased merchandise on account from Braun's Wholesale Supply for $ 4,100, terms 2/10, n/30.
2Sold merchandise on account $ 2,400, terms 1/10, n/30. The cost of the merchandise sold was $ 1,400.
5Received credit from Braun's Wholesale Supply for merchandise returned $ 300.
9Received collections in full, less discounts, from customers billed on May 2.
10Paid Braun's Wholesale Supply in full, less discount.11Purchased supplies for cash $ 300.
12Purchased merchandise for cash $ 1,500.
15Received $ 200 refund for return of poor-quality merchandise from supplier on cash purchase.
17Purchased merchandise on account from Valley Distributors for $ 1,400, terms 2/10, n/30,FOB shipping point.
19Paid freight on May 17 purchase $ 100.24Sold merchandise for cash $ 3,300. The merchandise sold had a cost of $ 2,200.
25Purchased merchandise on account from Lumley, Inc. for $ 750, terms 2/10, n/30.
27Paid Valley Distributors in full, less discount.
29Made refunds to cash customers for returned merchandise $ 60. The returned merchandisecost $ 40.
31Sold merchandise on account for $ 1,500 terms n/30. The cost of the merchandise sold was $ 500.
Crane Hardware's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 301 Owner's Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.
Problem (a) Journalize the transactions using a perpetual inventory system.