Comprehensive Problem 2 Part 1 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 115 Inventory $83,600 233,900 624,400 116 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 212 Customers Refunds Payable 50,000 310 Common Stock 100,000 311 Retained Earnings 585,300 312 Dividends $135,000 410 Sales 5,069,000 510 Cost of Goods Sold 2,823,000 520 Sales Salaries Expense 664,800 521 Advertising Expense 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 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 13: Paid for merchandise purchased on May 3. Post. Date Description Debit Credit Ref. May 13 Accounts Payable-Martin Co. 36,000 Cash 35,280 Sales Discounts 720 May 26: Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. Post. Date Description Debit Ref. May 26-Refund Sales Returns and Allowances x 7,500 Cash May 26-Cost Inventory Estimated Returns Inventory Credit 7,500 4,800 4,800 May 31: Received cash from sale of May 21 plus freight. Date Description May 31 Cash Accounts Receivable-Crescent Co. Post. Ref. Debit Credit 90,300 X 90,300 X May 31: Paid for purchase of May 21, less return of May 24. Post. Date Description Debit Credit Ref. May 31 Accounts Payable-Osterman Co. 83,000 Cash 82,170 Store Supplies Expense 830