Cullumber Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Cullumber showed Cash of $5,000 and Owner's Capital of $5,000. Purchased merchandise on account from Braun's Wholesale Supply $4,300, terms 2/10, n/30. Sold merchandise on account $1,800, terms 1/10, n/30. The cost of the merchandise sold was $1,600. Received credit from Braun's Wholesale Supply for merchandise returned $300. Received collections in full, less discounts, from customers billed on sales of $1,800 on May 2. Paid Braun's Wholesale Supply in full, less discount. Purchased supplies for cash $400. Purchased merchandise for cash $1,300. Received refund for poor quality merchandise from supplier on cash purchase $100. Purchased merchandise from Valley Distributors $1,200, FOB shipping point, terms 2/10, n/30. Paid freight on May 17 purchase $200. Sold merchandise for cash $2,800. The merchandise sold had a cost of $2,200. Purchased merchandise on account from Lumley, Inc. $750, FOB destination, terms 2/10, n/30. Paid Valley Distributors in full, less discount. Made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $30. 31 Sold merchandise on account $1,500, terms n/30. The cost of the merchandise sold was $500. May 1 2 5 9 10 11 12 15 17 19 24 25 27 29 Date May 1 May 2 May 2 V May 5 May 9 Account Titles and Explanation Inventory Accounts Payable Accounts Receivable Sales Revenue (To record credit sale) Cost of Goods Sold Inventory (To record cost of merchandise sold) Accounts Payable Inventory Cash Sales Discounts Debit 4.300 1,800 1,600 300 1,782 18 Credit 4.30 1,80 1,60 30 May 10 May 11 May 12 May 15 May 17 May 19 Accounts Receivable Accounts Payable Inventory Cash Supplies Cash Inventory Cash Cash Inventory Inventory Accounts Payable Inventory 4,000 400 1,300 100 1.200 200 1,80 8 3,92 40 1,30 10 1,20 May 24 May 24 May 25 May 27 May 29 Cash Cashi Sales Revenue (To record cash sale) Cost of Goods Sold Inventory (To record cost of merchandise sold) Inventory Accounts Payable Accounts Payable Inventory Cash Sales Returns and Allowances Cach 2,800 2,200 750 1,200 70 20 2,80 2,20 75 2 1,17 (b) May 29 May 29 May 31 May 31 Sales Returns and Allowances Cash (To record merchandise returned) Inventory Cost of Goods Sold (To record cost of merchandise returned) Accounts Receivable Sales Revenue (To record credit sale) Cost of Goods Sold Inventory (To record cost of merchandise sold) 70 30 1,500 500 3 1.50 50 Enter the beginning cash and capital balances and post the transactions. (Post entries in the order of journal entries presented in the previous part.) Cash Date Explanation Balance Ref. J1 J1 J1 J1 J1 J1 J1 J1 J1 Debit Credit Balance No. 101 Accounts Receivable Date Inventory Date Explanation Ref. J1 J1 J1 Explanation Ref. J1 J1 J1 J1 J1 J1 J1 Debit Debit Credit Credit Balance Balance No. 112 No. 120 Supplies Date Accounts Payable Date J1 J1 J1 J1 J1 J1 Explanation Ref. J1 Explanation Ref. J1 J1 J1 Debit Debit Credit Credit Balance No. 126 Balance No. 201 Owner's Capital Date Sales Revenue Date Date Sales Discounts Balance Sales Returns and Allowances J1 J1 Explanation Ref. J1 V Explanation Ref. J1 J1 J1 Explanation Ref. J1 Debit Debit Debit Credit Credit Credit Balance No. 301 No. 401 Balance Balance No. 412 No. 414 Owner's Capital Date Sales Revenue Date Date Sales Discounts Balance Sales Returns and Allowances J1 J1 Explanation Ref. J1 V Explanation Ref. J1 J1 J1 Explanation Ref. J1 Debit Debit Debit Credit Credit Credit Balance No. 301 No. 401 Balance Balance No. 412 No. 414 Sales Returns and Allowances Date Sales Discounts Date Explanation Ref. Date Cost of Goods Sold J1 Explanation Ref. J1 Explanation Ref. J1 J1 J1 J1 Debit Debit Debit Credit Credit Credit Balance Balance Balance No. 412 No. 414 No. 505