Comprehensive Problem 2 Part 1 and Part 2: Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 2018, are as follows. Assume all accounts have normal balances. 110 Cash $83,600 312 Dividends $135,000 112 Accounts Receivable 233,900 313 Income Summary 115 Inventory 624,400 410 Sales 5,069,000 116 Estimated Returns Inventory 28,000 510 Cost of Goods Sold 2,823,000 117 Prepaid Insurance 16,800 520 Sales Salaries Expense 664,800 118 Store Supplies 11,400 521 Advertising Expense 281,000 123 Store Equipment 569,500 522 Depreciation Expense 124 Accumulated Depreciation-Store Equipment 56,700 523 Store Supplies Expense 210 Accounts Payable 96,600 529 Miscellaneous Selling Expense 12,600 211 Salaries Payable 530 Office Salaries Expense 382,100 212 Customers Refunds Payable 50,000 531 Rent Expense 83,700 310 Common Stock 100,000 532 Insurance Expense 311 Retained Earnings 585,300 539 Miscellaneous Administrative Expense 7,800 Part 1: Journalize the transactions below for May, the last month of the fiscal year. For a compound transaction, if an amount box does not require an entry, leave it blank. Part 2: Using the attached spreadsheet, post the journal entries from Part 1 to the general ledger. Extend the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. May 1: Paid rent for May, $5,000. Date Description Post. Ref. Debit Credit May 1 May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Date Description Post. Ref. Debit Credit May 3 Print Ilem May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000, Date Description Post. Ref. Debit Credit May 3 May 4: Paid freight on purchase of May 3, $600. Date Description Credit Post. Ref. Debit May 4 May 6: Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the goods sold was $41,000. Date Description Post. Ref. Debit Credit May 6 May 7: Received $22,300 cash from Halstad Co. on account. Debit Date Credit Post. Ref. Description May ? May 10: Sold merchandise for cash, $54,000. The cost of the goods sold was $32,000. - Press May 10: Sold merchandise for cash, $54,000. The cost of the goods sold was $32,000. Date Description Post. Ref. Debit Credit May 10 May 13: Paid for merchandise purchased on May 3. Date Description Post. Ref. Debit Credit May 13 May 15: Paid advertising expense for last half of May, $11,000. Date Debit Credit Post. Ref. Description May 15 May 16: Received cash from sale of May 6. Debit Date Description Post. Ref. Credit May 16 May 19: Purchased merchandise for cash, $18,700. Date Description Post. Ref. Debit Credit May 19: Paid $33,450 to Buttons Co. on account. Date Description Post. Ref. Debit Credit May 19 May 20: Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise wa Date Description Post. Ref. Debit Credit May 20 May 20: Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the merchandise sold was $70,000. Date Description Post. Ref. Debit Credit May 20 May 21: For the convenience of Crescent Co., paid freight on sale of May 20, $2,300. Date Description Post. Ref. Debit Credit May 21 Check My Work May 21: Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000. Date Description Post. Ref. Debit Credit May 21 May 24: Returned $5,000 of damaged merchandise purchased on May 21, receiving credit from the seller. Date Description Post. Ref. Debit Credit May 24 May 26: Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. Date Description Post. Ref. Debit Credit May 26 May 28: Paid sales salaries of $56,000 and office salaries of $29,000. Date Description Post. Ref. Debit Credit May 28 May 29: Purchased store supplies for cash, $2,400. Date Description Post. Ref. Debit Credit May 29 May 30: Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000. Date Description Post. Ref. Debit Credit May 30 May 30: Received cash from sale of May 20 plus freight paid on May 21. Date Description Post. Ref. Debit Credit May 30 May 31: Paid for purchase of May 21, less return of May 24. Date Description Post. Ref. Debit Credit May 31