A B 1 Comprehensive Problem 2 2 3 Transactions: 4 May 1 5 May 2 6 7 May 3 8 May 4 9 May 7 10 May 10 11 12 May 13 13 May 15 14 May 17 Paid rent for May, $6,000. Sold merchandise on account to Korman Co., terms n/15, FOB shipping point, $68,500. The cost of the goods sold was $41,000. D Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Paid freight on purchase of May 3, $600. Received $22,300 cash from Halstad Co. on account. Sold merchandise with a list price of $61,500 to customers who used VISA and who redeemed $7,500 of point-of-sale coupons. The cost of the goods sold was 32,000. Paid for merchandise purchased on May 3. Paid advertising expense for last half of May, $12,000. Received cash from sale of May 2. Purchased merchandise for cash, $18,700. Paid $33,450 to Buttons Co. on account. 15 May 19 16 May 19 Problem Detail General Journal 67 General Journal 68 General Journal 69 General Journal 70 Adjusting General Jow Ready 48F Accessibility: Good to go 17 May 20 18 19 May 21 20 21 May 21 22 May 21 23 May 21 24 May 24 25 May 26 26 May 28 27 May 29 28 May 30 29 30 May 31 31 May 31 32 Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 2. The cost of the returned merchandise was $8,000. Sold merchandise on account to Crescent Co., terms n/eom, FOB shipping point, $110,000. The cost of the goods sold was $70,000. For the convenience of Crescent Co., paid freight on sale of May 21, $2,300. Received $42,900 cash from Gee Co. on account. Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000. Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. Paid sales salaries of $57,000 and office salaries of $29,000. Purchased store supplies for cash, $2,400. Sold merchandise on account to Turner Co., terms n/30, FOB shipping point, $78,750. The cost of the goods sold was $47,000. Received cash from sale of May 21 plus freight. Paid for purchase of May 21, less return of May 24. 34 1. Journalize the transactions for May, the last month of the fiscal year. 35 36 2. Journalize the adjusting entries. 37 D 46 47 38 39 At the end of May, the following adjustment data were assembled: Item Description 40 41 42 43 44 45 a Physcial inventory count on May 31 b Insurance expired during the year c Store supplies on hand on May 31 d Depreciation for the current year e Accrued salaries on May 31: Sales salaries Office salaries Total Amount ######## (accou 12,000 4,000 (accou 14,000 $ 7,000 6,600 13,600 48 f The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of goods sold. 49 Problem Detail General Journal 67 General Journal 68 General Journal 69 General Journal 70 Adjusting General Journal 71