Cowan furniture company engage in the following transactions during May of the current year:

1. journalize the proceeding transactions on the books of Cowan furniture company. Assume the company uses the perpetual inventory system.

2. suppose the balance in inventory was 53,000 on May 1 what is the balance in inventory on May 31?

journalize the proceeding transactions on the books of Cowan Furniture company. Assume the company uses the perpetual inventory system.

a) we begin with the purchase of inventory for cash on May 2 purchased inventory for cash $22000, less a quantity discount of $3094.

b) May 5 purchase store supplies on credit terms of not OEM $3400

c) May 8 purchased inventory of $58,000 less a quantity discount of 8% plus freight charges of 2600 credit terms are 3/15 n/30.

d) The May 9 transaction requires two entries, sold goods for cash $31,000. Cowans Cost of these goods was $13,500. Let's enter the sale first.

e) The second entry for the transaction of May 9 records the effect on inventory. Let's enter that now.

f) May 11. Returned $3800 (net amount after the quantity discount) Of the inventory purchased on May 8. It was damaged in shipment.

g) May 12. Purchase inventory on credit terms of 3/10, n/30, $78,000.

h) May 14. Sold inventory on credit terms of 2/10, n/30, for 146,000, less a $14,600 quantity discount (cost, 97,000). this transaction requires us to make two journal entries. Let's enter the sales transaction first.

i) now, we can enter the cost of goods sold transaction of may 14th.

j) May 16. Received and paid the electricity bill, $4600. Record the payment of utilities.

k) The transaction of May 20 requires two entries. Received returned inventory from the May 14 sale, $5800 (net amount after the quantity discount). Cowan shipped the wrong goods by mistake. Cowans cost of inventory received $3800. Let's enter the adjustment to the customers account receivable now.

l) no, enter the adjustment to the cost of goods sold account for the return of inventory from the customer.

m) May 21. Paid supplier for goods purchased on May 8 less the discount and the return. Enter the payment for purchases now.

n) May 23. Received $102,960 cash in partial settlement of the account from the customer who purchased inventory on May 14. Granted the customer a 1% discount and credited the customers account receivable for 104,000.

o) May 31 paid for the store supplies purchased on May 5.

suppose the balance in inventory was $53,000 on May 1. What is the balance in inventory on May 31?

The balance in inventory on May 31 was _____

May 2 Purchased inventory for cash $22,000, less a quantity discount of $3,094 5 Purchased store supplies on credit terms of net eom, $3,400 8 Purchased inventory of $58,000 less a quantity discount of 8 percent, plus freight charges of $2,600 Credit terms are 3/15, n/30 9 Sold goods for cash $31,000. Cowan's cost of these goods was $13,500 11 Returned $3,800 (net amount after the quantity discount) of the inventory purchased on May 8 It was damaged in shipment 12 Purchased inventory on credit terms of 3/10, n/30, $78,000 14 Sold inventory on credit terms of 2/10 n/30 for $146,000, less a $14,600 quantity discount (cost, $97.000). 16 Received and paid the electricity bill, $4,600 20 Received returned inventory from the May 14 sale, $5,800 (net amount after the quantity discount). Cowan shipped the wrong goods by mistake. Cowan's cost of the inventory received was $3,800 21 Paid supplier for goods purchased on May 8 less the discount and the return Freight costs are not subject to purchase discounts 23 Received $102,960 cash in partial settiement of the account from the customer who purchased inventory on May 14. Granted the customer a 1 percent discount and credited the customer's account receivable for $104,000 31 Paid for the store supplies purchased on May 5 Journal Entry Date Accounts Debit Credit May