Singh Distributing Company uses the perpetual inventory system and engaged in the following transactions during May of the current year:
May 3 Purchased office supplies for cash, $11,000.
7 Purchased inventory on credit terms of 3/10, net eom, $76,000.
8 Returned 25 percent of the inventory purchased on May 7. It was not the inventory ordered.
10 Sold goods for cash, $17,000 (cost, $10,200).
13 Sold inventory on credit terms of 2/15, n/45, for $150,800, less $15,080 quantity discount offered to customers who purchased in large quantities (cost, $90,480).
16 Paid the amount owed on account from the purchase of May 7, less the discount and the return.
17 Received wrong-sized inventory as a sales return from May 13 sale, $12,400, which is the net amount after the quantity discount. Singh's cost of the inventory received was $7,440.
18 Purchased inventory of $164,000 on account. Payment terms were 2/10, net 30.
26 Paid supplier for goods purchased on May 18.
28 Received cash in full settlement of the account from the customer who purchased inventory on May 13.
31 Purchased inventory for cash, $84,000, less a quantity discount of $8,400, plus freight charges of $2,200.
Required
1. Journalize the preceding transactions on the books of Singh Distributing Company.
2. Suppose the balance in Inventory was $20,000 on May 1. What is the balance in inventory on May 31?