and Part 2: Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 2016 (unless otherwise indicated), are as follows. Assume all accounts have normal balances. 110 Cash $83,600 112 Accounts Receivable 233,900 115 Inventory 624,400 116 Estimated Returns Inventory 28,000 117 Prepaid Insurance 16,800 118 Store Supplies 11,400 123 Store Equipment 569,500 124 Accumulated Depreciation-Store Equipment 56,700 210 Accounts Payable 96,600 211 Salaries Payable 211 Salaries Payable 212 Customers Refunds Payable 50,000 310 Common Stock 100,000 311 Retained Earnings 312 Dividends 410 Sales 585,300 $135,000 5,069,000 510 Cost of Goods Sold 2,823,000 520 Sales Salaries Expense 521 Advertising Expense 664,800 281,000 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense - 12,600 382,100 83,700 532 Insurance Expense 539 Miscellaneous Administrative Expense - 7,800 Date Description Post. Ref. Debit Credit May 1 May 2: Sold merchandise on account to Korman Co., terms n/15, FOB shipping point, $68,500. The cost of the goods sold was $41,000. Date Description Post. Ref. Debit Credit May 2 May 2 May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Date May 3 Description Post. Ref. May 4: Paid freight on purchase of May 3, $600. Date May 4 Description Debit Credit Post. Ref. Debit Credit May 7: Received $22,300 cash from Halstad Co. on account. Date May 7 Description Post. Ref. Debit Credit May 10: 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. Date May 10-Sales May 10-Cost Description Post. Ref. Debit Credit May 13: Paid for merchandise purchased on May 3. Date May 13 Description Post. Ref. Debit Credit May 15: Paid advertising expense for last half of May, $11,000. Date May 15 Description May 17: Received cash from sale of May 2. Date May 17 Description Post. Ref. Debit Credit Post. Ref. Debit Credit May 19: Purchased merchandise for cash, $18,700. Date May 19 Description Post. Ref. Debit Credit May 19: Paid $33,450 to Buttons Co. on account. Date May 19 Description Post. Ref. Debit Credit May 20: 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. Date Description Post. Ref. Debit Credit May 20-Refund May 20-Cost May 21: Sold merchandise on account to Crescent Co., terms n/eom, FOB shipping point, $110,000. The cost of the goods sold was $70,000. Date Debit May 21-Sales Description Post. Ref. Credit May 21-Cost May 21: For the convenience of Crescent Co., paid freight on sale of May 21, $2,300. Date Description Post. Ref. Debit Credit May 21 May 21: Received $42,900 cash from Gee Co. on account. Date May 21 Description Post. Ref. Debit Credit May 21: Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000. Date May 21 Description Post. Ref. Debit Credit May 24: Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Date May 24 Description Post. Ref. Debit Credit May 26: Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. Date May 26-Refund May 26-Cost Description Post. Ref. Debit Credit May 28: Paid sales salaries of $56,000 and office salaries of $29,000. Date May 28 Description Post. Ref. May 29: Purchased store supplies for cash, $2,400. Date May 29 Description Debit Credit Post. Ref. Debit Credit May 30: Sold merchandise on account to Turner Co., terms n/30, FOB shipping point, $78,750. The cost of the goods sold was $47,000. Date May 30-Sales May 30-Cost Description Post. Ref. Debit Credit May 31: Received cash from sale of May 21 plus freight. Date May 31 Description Post. Ref. Debit Credit May 31: Paid for purchase of May 21, less return of May 24. Date May 31 Description Post. Ref. Debit Credit