inventory transactions

Assignment on Inventory Transactions The Dorn Hrdware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Domn showed cash of $5,000 and S. Dom Capital of $5,000 May 1: Purchased merchandise on account from Depot Wholesale supply $5,000 terms 2/10, n/30 May 2: Sold merchandise on account for $4000 terms 2/10,0/30. Cost of the merchandise 3700 May 5: Received credit from Depot wholesale supply for merchandise returned $200 May 9: Received collections in full, less discount, from customers billed on sales of $4000 on May 2 May 10: Paid Depot whole sale supply in full, less discount May 11: Purchased supplies for cash $900 May 12: Purchased merchandise for cash 2,400 from Max supplier May 15: Received refund for poor quality merchandise from Max supplier on cash purchase $230. May 17: Purchased merchandise from Harlow Distributions $1900 FOB shipping point, terms 2/10.n/30 May 19: Paid freight on 17 purchases $250. May 24: Sold merchandise for cash $6200. Cost of merchandise 6000 May 25: Purchased merchandise from Horicon Inc. $1000 FOB destination, terms 2/10,1/30 May 27: Paid Harlow Distributors in full, less discount. May 31: Sold merchandise on account $1,600 terms n/30. Cost of merchandise 1400 Required I: Journalize the above transactions assuming that the company is using the periodic inventory system.. Date Accounts May 1 + Debit Credit May 2 May 5 May 9 May 10 May 11 May 12 May 15 May 17 May 19 May 24 May 25 May 27 May 31 II. Repeat the previous requirement assuming that the company is using perpetual inventory system Date Accounts Debit Credit May 1 May 2 May 5 May 9 May 10 May 11 May 12 May 15 May 17 May 19 May 24 May 25 May 27 May 31 Question Two: Presented below is information related to Douglas Co. for the month of January Freight in $10,000 Freight out 7,000 (selling exp) Insurance expense 12,000 (administrative exp) Purchases 200,000 Purchase Discount 3000 Purchase Returns and Allowances 6,000 Rent Expense 20,000 Salary expense 61,000 (selling expense) Sales Discount 8,000 Sales Returns and Allowances 13.000 Beginning merchandise inventory $42,000 Ending Inventory S 60,000 Required: Compute the following 1. Net Sales 2. Cost of Goods Purchased 3. Cost of Goods Sold 4.Gross Profit Thank you 5. Net Income