Ivanhoe Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Ivanhoe showed Cash of $ 5,500, Inventory of $ 8.000 and Owner's Capital of $ 13,500. May 2 9 24 Sold merchandise on account $ 1,800, terms 1/10,n/30. The cost of the merchandise sold was $ 1,500. Received collections in full, less discounts, from customers billed on sales of $ 1,800 on May 2. Sold merchandise for cash $3,200. The merchandise sold had a cost of $ 2.200. Made refunds to cash customers for defective merchandise $ 80. The returned merchandise had a fair value of $ 40. Sold merchandise on account $1,500 terms n/30. The cost of the merchandise sold was $ 500. 29 31 Ivanhoe Hardware's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 301 Owner's Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No 414 Sales Discounts, and No. 505 Cost of Goods Sold. Journalize the transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Journalize the transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit I (To record credit sale) (To record cost of merchandise sold) (To record cash sale) (To record cost of merchandise sold) (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 in the order of journal entries presented in the previous part.) Cash No. 101 Date Explanation Ref. Debit Credit Balance Balance J1 J1 31 No. 112 Accounts Receivable Date Explanation Ref. Debit Credit Balance 31 31 31 Inventory No. 120 Date Explanation Ref. Debit Credit Balance Balance Ji J1 31 J1 No. 301 Owner's Capital Date Explanation Ref. Debit Credit Balance Balance Sales Revenue No. 401 Date Explanation Ref. Debit Credit Balance J1 31 31 No. 412 Sales Returns and Allowances Explanation Date Ref. Debit Credit Balance 31 No. 414 Sales Discounts Explanation Date Ref. Debit Credit Balance 31 Cost of Goods Sold Date Explanation No. 505 Ref. Debit Credit Balance 31 31 J1 01 IVANHOE HARDWARE STORE Income Statement (Partial) $ $ $
