Blossom Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Blossom showed Cash of $5,500 and Owner's Capital of $5,500. May 1 2 Purchased merchandise on account from Braun's Wholesale Supply $4,300, terms 2/10, n/30. Sold merchandise on account $2,000, terms 1/10, n/30. The cost of the merchandise sold was $1,300. 5 Received credit from Braun's Wholesale Supply for merchandise returned $200. 9 Received collections in full, less discounts, from customers billed on sales of $2,000 on May 2. 10 10 Paid Braun's Wholesale Supply in full, less discount. 11 Purchased supplies for cash $300. 12 12 15 Purchased merchandise for cash $1,300. Received refund for poor quality merchandise from supplier on cash purchase $150. 17 Purchased merchandise from Valley Distributors $1,200, FOB shipping point, terms 2/10, n/30. 19 24 24 Paid freight on May 17 purchase $100. Sold merchandise for cash $3,000. The merchandise sold had a cost of $2,200. 25 Purchased merchandise on account from Lumley, Inc. $750, FOB destination, terms 2/10, n/30. 27 Paid Valley Distributors in full, less discount. 29 Made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $30. 31 Sold merchandise on account $1,000, terms n/30. The cost of the merchandise sold was $500. Journal Entries Dute Accounts Title May 1ventory Accounts Payable Deb Credit 15 4300 $ 4,300 (To record inventory purchased on account May 2 Accounts Receivable $2000 Sales Revenue 15 2000 To record sales revenue eamed on accoun May 2 Cod of S $1300 Inventory $ 1300 (To record cost of goods sold incred May 5 Accounts Payable To record inventory returned) May Cash Sales Discount Accounts Receivable 15 11 1980 15 20 2,300 (to record amount received on account May 10 Accounts Payable Cash 15 4300 (To record payment made on account) May 11 Supplies Cash Cash S 15 300 To record supplies purchased 1300 Le (To record inventory purchased in cash May 13 Cash 130 350 (To recont inventory returned and refunded May 17ventory $1,200 5 1306 To record inventory purchased on account). May 19ventory Cash May 24 Cash (To record freight charges incuted Sales Revenue (To record sales revenue eamed on account $ 300 3000 May 24 Cost of Goods Sold $ 2,200 To record cost of goods sold incured 750 15 70 (To recond inventory purchased on account May 27 Accounts Payable Cash $1300 15 34 LIN (To record payment made on account) May 29 Sales Return & Allowance Cash S 15 70 To second goods return to custome May 29ventory 15 Cost of Goods Sold To record cost of goods sold reversed 5 1000 Sales Revenue (To record sales revenue samed on account) May 31 Cost of Goods Sold Inventory s 300 15 500 (To record cost of goods sold incurved 2. Ledgers - Cash Common Stock Date Debit Credit Balance Date Debit Credit Balance May 1 $ 8,400 $ 8,400 May 1 $ 8,400 May 9 $1,980 $10,380 May 10 May 11 $ 4,018 $6,362 $ 300 $ 6,062 Sales Revenue May 12 $ 1,300 $4,762 Date Debit Credit May 15 $ May 19 150 $ 4,912 May 2 Balance $2,000 $2,000 $ 100 $4,812 May 24 $ 3,000 $5,000 May 24 $ 3,000 $ 7,812 May 31 $ 1,000 $6,000 May 27 $ 1,176 $6,636 May 29 $ 70 $ 6,566 Cost of Goods Sold Inventory Date Debit Credit Balance Date May 2 Debit $1,300 Credit Balance $1,300 May 1 $ 4,300 $ 4,300 May 24 $ 2,200 $ 3,500 May 2 $ 1,300 $3,000 May 29 $ 30 $3,470 May 5 $ 200 $2,800 May 31 $ 500 $ 3,970 May 10 $ 82 $2,718 May 12 $1,300 $ 4,018 Sales Discount May 15 $ 150 $3,868 Date Debit Credit May 17 $1,200 $ 5,068 May 9 $ 20 Balance $ 20 May 19 $ 100 $ 5,168 May 24 $ 2,200 $2,968 May 25 $ 750 $ 3,718 Sales Return & Allowance May 27 $ 24 $3,694 Date May 29 $ May 31 30 $ $ 3,724 500 $3,224 May 29 Debit $70 Credit Balance $ 70 Accounts Receivable Accounts Payable Date Debit Credit Balance Date Debit Credit Balance May 2 $2,000 $2,000 May 1 $ 4,300 $4,300 May 9 $ 2,000 $ May 5 $ 200 $ 4,100 May 31 $ 1,000 $ 1,000 May 10 $4,100 $ May 17 $ 1,200 $1,200 Supplies May 25 $ 750 $1,950 Date May 11 $ 300 Debit Credit Balance $300 May 27 $1,200 $ 750 BLOSSOM HARDWARE STORE Income Statement (Partial) $