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 112 Accounts Receivable $83,600 312 Dividends $135,000 233,900 410 Sales 5,069,000 115 Inventory 624,400 510 Cost of Goods Sold 2,823,000 116 Estimated Returns Inventory 28,000 520 Sales Salaries Expense 664,800 117 Prepaid Insurance. 16,800 521 Advertising Expense 281,000 118 Store Supplies 11,400 522 Depreciation Expense 123 Store Equipment 569,500 523 Store SuppliExpense 124 Accumulated Depreciation-Store Equipment 56,700 529 Miscellaneous Selling Expense 12,600 210 Accounts Payable 96,600 530 Office Salaries Expense 382,100 211 Salaries Payable - 531 Rent Expense 83,700 212 Customers Refunds Payable 50,000 532 Insurance Expense 310 Common Stock 7,800 311 Retained Earnings 100,000 539 Miscellaneous Administrative Expense 585,300 539 Part 1: Journalize the transactions below for May, the last month of the fiscal year. If an amount box does not require an entry, leave it blank. May 1: Paid rent for May, $5,000. Date May 1 Description Post. Ref. Debit Credit 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. Debit Credit May 4: Paid freight on purchase of May 3, $600. Date May 4 Description Post. Ref. Debit Credit May 6: Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the g $41,000. Date Description Post. Ref. Debit Credit May 6-Sales May 6-Cost May 7: Received $22,300 cash from Halstad Co. on account. Date May 7 Description Post. Ref. Debit Credit May 10: Sold merchandise for cash, $54,000. The cost of the goods sold was $32,000. Date May 10-Sales Description Post. Ref. Debit Credit May 10: Sold merchandise for cash, $54,000. The cost of the goods sold was $32,000. Date May 10-Sales May 10-Cost Description Post. Ref. May 13: Paid for merchandise purchased on May 3. Date May 13 Description Post. Ref. Debit Credit Debit Credit May 15: Paid advertising expense for last half of May, $11,000. Date May 15 Description Post. Ref. Debit Credit May 15: Paid advertising expense for last half of May, $11,000. Date May 15 Description Post. Ref. May 16: Received cash from sale of May 6. Date May 16 Description 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 191 Description Post. Ref. Debit Credit May 20: Paid Korman Co, a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000. Date May 20-Refund May 20-Cost Description Post. Ref. Debit Credit May 20: Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the goods sold was $70,000. Date Description Post. Ref. Debit Credit May 20-Sales May 20-Cost May 21: For the convenience of Crescent Co., paid freight on sale of May 20, $2,300. Date May 21 Description Post. Ref. Debit May 21: Received $42,900 cash from Gee Co. on account. Date May 21 Description Post. Ref. Credit Debit Credit 13 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 Description Post. Ref. Debit Credit May 24 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 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 Post. Ref. Debit Credit Credit Debit Credit May 29: Purchased store supplies for cash, $2,400. Date May 29 Description Post. Ref. Debit Credit May 30: Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the goods sold was $47,000. Date Description May 30-Sales Accounts Receivable-Turner Co. Sales May 30-Cost Cost of Goods Sold Inventory Post. Debit Credit Ref. 77,175 77,175 47,000 47,000 May 30: Received cash from sale of May 20 plus freight paid on May 21. Date Description Post. Ref. Debit Credit May 30: Received cash from sale of May 20 plus freight paid on May 21. Date May 30 Description Post. Ref. Debit May 31: Paid for purchase of May 21, less return of May 24. Date May 31 Description Post. Ref. Debit Credit Credit Part 2: Using the attached spreadsheet, post the journal entries from Part 1 to the general ledger. Extend the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers