Answer part B

Cheyenne Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Cheyenne showed Cash of $8,100 and Common Stock of $7,200. May 1 Purchased merchandise on account from Black Wholesale Supply for $7,200, terms 1/10, n/30. 2 Sold merchandise on account $4,800, terms 2/10, n/30. The cost of the merchandise sold was $3,500. 5 Received credit from Black Wholesale Supply for merchandise returned $200. 9 Received collections in full, less discounts, from customers billed on May 2. 10 Paid Black Wholesale Supply in full, less discount. 11 Purchased supplies for cash $900. 12 Purchased merchandise for cash $3,200. 15 Received $230 refund for return of poor quality merchandise from supplier on cash purchase. 17 Purchased merchandise on account from Wilhelm Distributors for $2,300, terms 2/10, n/30, FOB shipping point. 19 Paid freight on May 17 purchase $270. 24 Sold merchandise for cash $5,500. The merchandise sold had a cost of $4,300. 25 Purchased merchandise on account from Clasps, Inc. for $700, terms 3/10, n/30. 27 Paid Wilhelm Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $136. The returned merchandise cost $10. 31 Sold merchandise on account for $1,190 terms n/30. The cost of the merchandise sold was $850. Cheyenne Hardware's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 311 Common Stock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. (a) Your answer is correct. Journalize the transactions using a perpetual inventory system (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter "O"for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credi V Inventory 7200 Accounts Payable ay2 V Accounts Receivable 4800 Sales Revenue To record credit sale) Cost of Goods Sold 3500 Inventory (To record cost of merchandise sold) Accounts Payable 200 Inventory Gay9 Cash 4704 Sales Discounts 96 Accounts Receivable ay 10 Accounts Payable 7000 Inventory Cash ay 11 Supplies 900 Cash ay 12 V Inventory 3200 Cash ay 15 Cash 230 Inventory ay 17 Inventory 2300 Accounts Payable ay 19 Inventory 270 Cash ay 24 Cash 5500 Sales Revenue (To record cash sale) Cost of Goods Sold 4300 Inventory (To record cost of merchandise sold) ay 25 Inventory 700 Accounts Payable ay27 Accounts Payable 2300 Inventory Cash av 29 Sales Returns and Allowances 136 Cash (To record merchandise returned ay 29 Inventory 10 Cost of Goods Sold (To record cost of merchandise returned) 231 Accounts Receivable 1190 Sales Revenue To record credit sale) ON NO ay 31 Cost of Goods Sold 850 Inventory (To record cost of merchandise sold) (b) Enter the beginning cash and common stock balances and post the transactions. (Post entries in the order of journal entries presented in the previous question.) Cash Date Explanation Ref. Debit Credit Balanc Balance J1 V J1 V J1 J1 J1 J1 J1 J1 J1 Accounts Receivable Date Explanation Ref. Debit Credit Balanc J1 V J1 J1 Inventory | Date Explanation Ref. Debit Credit Balanc J1 V J1 V J1 V J1 31 J1 J1 J1 J1 J1 J1 J1 J1 Supplies Date Explanation Ref. Debit Credit Balanc J1 Accounts Payable Date Explanation Ref. Debit Credit Balanc J1 J1 V J1 J1 J1 J1 Common Stock Date Explanation Ref. Debit Credit Balanc Balance V Sales Revenue Date Explanation Ref. Debit Credit Balanc J1 J1 J1 Sales Returns and Allowances Date Explanation Ref. Debit Credit Balanc J1 Sales Discounts Date Explanation Ref. Debit Credit Balanc J1 Cost of Goods Sold Date Explanation Ref. Debit Credit Balanc J1 J1 J1 J1