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. Purchased supplies for cash $300. 11 11 12 12 Purchased merchandise for cash $1,300. 15 Received refund for poor quality merchandise from supplier on cash purchase $150. 17 19 24 24 Purchased merchandise from Valley Distributors $1,200, FOB shipping point, terms 2/10, n/30. 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. Blossom 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. 301 Owner's Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. (a) Your Answer Correct Answer 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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation May 1 Inventory Accounts Payable May 2 O Accounts Receivable Sales Revenue (To record credit sale) Debit Credit 4300 2000 4300 2000 May 2 Cost of Goods Sold May 5 Inventory (To record cost of merchandise sold) Accounts Payable May 9 4 Inventory Cash Sales Discounts Accounts Receivable May 10 Accounts Payable Inventory Cash May 11 Supplies 1300 200 1980 20 4100 300 Cash 1300 200 2000 82 4018 300 May 12 Inventory 1300 Cash May 15 Cash Inventory May 17: Inventory Accounts Payable May 194 Inventory Cash May 24 cash Sales Revenue (To record cash sale) May 24 # Cost of Goods Sold Inventory 150 1200 100 3000 2200 1300 150 1200 100 3000 2200 May 25 (To record cost of merchandise sold) Inventory Accounts Payable May 27 Accounts Payable May 29 Inventory Cash Sales Returns and Allowances May 29 May 31 Cash (To record merchandise returned) Inventory Cost of Goods Sold (To record cost of merchandise returned) Accounts Receivable Sales Revenue 750 1200 70 30 1000 750 24 1176 70 30 1000 May 31: (To record credit sale) Cost of Goods Sold Inventory (To record cost of merchandise sold) 500 500 Cash No. 101 Date Explanation Ref. Debit Credit Balance Balance J1 J1 31 J1 J1 J1 I J1 J1 J1 No 112 Accounts Receivable Date No. 112 Explanation Ref. Debit Credit Balance J1 J1 01 Inventory No. 120 Date Explanation Ref. Debit Credit Balance J1 J1 J1 01 J1 01 31 I J1 01 J1 J1 J1 J1 Supplies No. 126 Date Explanation Ref. Debit Credit Balance J1 Accounts Payable No. 201 Date Explanation Ref. Debit Credit Balance J1 01 J1 J1 31 J1 Owner's Capital No. 301 Date Explanation Ref. Debit Credit Balance Balance No. 401 Sales Revenue Date Explanation Ref. Debit Credit Balance 31 01 31 Sales Returns and Allowances Date Ref. Explanation Debit Credit Balance No. 412 Sales Discounts Date No. 414 Explanation Ref. Debit Credit Balance J1 No. 505 Explanation Ref. Debit Credit Balance J1 Cost of Goods Sold Date 0 eTextbook and Media J1 01 3E J1