2)The ledger accounts given below, with an identification number for each, are used by Kelso Company.Prepare appropriate entries for the month of August by placing the appropriate identification number(s) in the debit and credit columns provided and the dollar amounts pertaining to each account in the adjoining columns. The company uses a periodic inventory system.

1. Cash 7. Sales Returns and Allowances [20]

2. Accounts Receivable 8. Purchases

3. Office Supplies 9. Purchase Returns and Allowances

4. Notes Receivable 10. Sales

5. Land 11. Freight Out

6. Accounts Payable 12. Freight In

Account(s) Account(s) Debit Credit

Entry Information Debited Amount(s). Credited Amount(s)

0. Aug. 1 Sold merchandise for cash $300. 1 $300 11 $300

1. Aug. 2 Purchased merchandise from XYZ Co. on account for $5,000

2. Aug. 4 Sold excess land for $7,000 accepting a 2-year, 8% note. The land was purchased for $7,000 last year.

3. Aug. 6 Sold merchandise to D. Sutton on account for $930.

4. Aug. 8 Accepted a sales return of defective merchandise from D. Suttoncredit granted was $280.

5. Aug. 11 Purchased merchandise from Shannon Hardware on account for $1,800.

6. Aug. 12 Paid freight of $200 on the shipment from XYZ Co.

7. Aug. 15 Received payment in full from D. Sutton.

8. Aug. 19 Paid XYZ Co. in full.

9. Aug. 20 Paid Shannon Hardware in full.

10. Aug. 23 Made cash refunds to cash customers for defective merchandise $70.

11. Aug. 27 Purchased office supplies for $250 cash.