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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

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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 $83,600 312 Dividends $135,000 112 Accounts Receivable 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 Supplies Expense 529 Miscellaneous Selling Expense 12,600 124 Accumulated Depreciation-Store Equipment 56,700 96,600 210 Accounts Payable 530 Office Salaries Expense 382,100 |- 211 Salaries Payable 83,700 531 Rent Expense 212 Customers Refunds Payable 50,000 532 Insurance Expense 100,000 310 Common Stock 7,800 539 Miscellaneous Administrative Expense 585,300 539 311 Retained Earnings 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 Description Post. Ref. Debit Credit A 40 10:13 PM ENG 2020-04-20 y ramphensive pro May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Date Description Post. Debit Ref. Credit May 3 Inventory Accounts Payable-Martin Co. 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. Debit Credit Ref. May 20-Sales Accounts Receivable-Crescent Co. Sales May 20-Cost Cost of Goods Sold 70,000 Inventory 70,000 May 21: Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000. Date Post. Description Credit Ref. Debit May 21 Inventory Accounts Payable-Osterman Co. 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 Accounts Payable-Osterman Co. 5,000 X Inventory 5,000 x May 31: Paid for purchase of May 21, less return of May 24. Date Post. Description Debit Ref. Credit May 31 Accounts Payable-Osterman Co. 83,000 X Cash 83,000 Part 2: Using the attached spreadsheet, post the journal entries from Part 1 to the general ledger. E to the appropriate balance columns after all posting is completed. In this problem, you are not requi accounts receivable and accounts payable subsidiary ledgers

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