Cullumber Hardware Store completed the following merchandising transactions in the month of May. At the beginning May, the ledger of Culturber showed Cash or 54,500 and Owner's Capital of $4,500 May 1 Purchased merchandise on account from Braun's Wholesale Supply $4,000, terms 7/10, 6/30 2 Sold merchandise on account 52,300, terms 1/10, 1/30. The cost of the merchandise sold was $1,500. 5 Received credit from Braun's Wholesale Supply for merchandise returned $400. 9 Received collections in full, less discounts, from customers bitled on sales of $2,300 on May 2 10 Pald Braun's Wholesale Supply in full less discount 11 Purchased supplies for cash $300 12 Purchased merchandise for cash $1,400. 15 Received refund for poor quality merchandise from supplier on cash purchase 5200 17 Frchased merchandise from Valley Distributors 51,300, FOB shipping point terms 2/10, 1/30. 19 Paid freight on May 17 purchase $150. 24 Sold merchandise for cash 53,100. The merchandise sold had a cost of $2,200. 35 Purchased merchandise on account from Lumiey, Inc. $550, FOB destination terms 2/10, 1/30 27 Paid Valley Distributors in full, less discount 29 Made refunds to cash customers for defective merchandises. The returned merchandise had a value of $20 31 Sold merchandise on account $1,000, terms 1/30 The cost of the merchandise sold was $500 Cullumber Hardware's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, 303 Owner's Capital No. 401 Sales Revenue, No. 4125 Returns and Allowances, No414 Sales Discounts, and No Sos cost of Good Sold Journalize the transactions using a perpetual Inventory system. (Credit account titles are automatically Indented wiu journal entries in the order presented in the problem.) Dato Account Titles and Explanation Debit Credit (To record credit sale) (To record cost of merchandise sold) V (To record cash sale) (To record cost of merchandise sold) (To record merchandise returned) (To record merchandise returned) (To record cost of merchandise returned) (To record credit sale) (To record cost of merchandise sold) Enter the beginning cash and capital balances and post the transactions. (Post entries Cash No. 101 Date Explanation Ref. Debit Credit Balance Balance J1 1 31 > J1 J1 J1 Accounts Receivable Date Explanation No. 112 Balance Ref. Debit Credit J1 Accounts Receivable No. 112 Date Explanation Ref. Deblt Credit Balance J1 J1 J1 Inventory Date No. 120 Balance Explanation Ref. Debit Credit J1 J1 J1 J1 J1 J1 J1
