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A company reported the following transactions. May 2 Purchased $39,800 of merchandise from Smith, terms 1/10, n/40. May 3 Purchased $19,900 of machinery on credit

A company reported the following transactions.

May 2 Purchased $39,800 of merchandise from Smith, terms 1/10, n/40.

May 3 Purchased $19,900 of machinery on credit from Johnson, terms n/45.

May 5 Borrowed $81,500 cash from Chase Bank by signing a long-term note payable.

May 9 Sold merchandise on credit to Williams, Invoice Number 105, for $3,980 (cost is $1,990).

May 10 Returned $635 of machinery purchased on May 3 to Johnson. The company reduces accounts payable by that amount.

May 11 Sent Smith Check Number 252 in payment of the May 2 invoice less the discount of $398.

May 12 Purchased $51,000 of merchandise from Garcia, terms 1/15, n/45.

May 14 Returned $3,580 of unsatisfactory merchandise purchased on May 12 to Garcia. The company reduces accounts payable by that amount.

May 17 Received payment from Williams for the sale of May 9 less the discount of $74

May 26 Issued check number 253 to Garcia in payment of the May 12 purchases less the May 14 return and the $326 discount.

May 27 Sold merchandise on credit to Jones , invoice number 106 for $4,510 (cost $1,918).

May 31 Sold merchandise for $59,500 cash (cost is $46,460)

Complete a sales journal, purchase journal, cash receipts journal, cash payments journal, and journal entry worksheet for Returned $635 of machinery purchased on May 3 to Johnson. The company reduces accounts payable by that amount.

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