Reference no: EM13913899

Journalize the transactions using a perpetual inventory system.

Waters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Waters ledger showed Cash of $11,517 and Common Stock of $11,517.

May 1 Purchased merchandise on account from Hauke Wholesale Supply for $8,300, terms 1/10, n/30.

2     Sold merchandise on account for $6,100, terms 2/10, n/30. The cost of the merchandise sold was $4,575.

5     Received credit from Hauke Wholesale Supply for merchandise returned $600.

9     Received collections in full, less discounts, from customers billed on May 2.

10     Paid Hauke Wholesale Supply in full, less discount.

11   Purchased supplies for cash $1,296.

12   Purchased merchandise for cash $4,463.

15   Received $331 refund for return of poor-quality merchandise from supplier on cash purchase.

17   Purchased merchandise from Friedrich Distributors for $4,300, terms 2/10, n/30.

19   Paid freight on May 17 purchase $360.

24   Sold merchandise for cash $7,918. The cost of the merchandise sold was $5,902.

25   Purchased merchandise from Fasteners Inc. for $1,152, terms 3/10, n/30.

27   Paid Friedrich Distributors in full, less discount.

29   Made refunds to cash customers for returned merchandise $138. The returned merchandise had cost $104.

31   Sold merchandise on account for $1,843, terms n/30. The cost of the merchandise sold was $1,195.