Krug Service Company 5.000 Expenses.................. *** ... Owner. Withdrawals ..... Cash ............ Prepaid rent............ Accounts payable.......... Owner, Capital............ Equipment .. . $ 8,500 14.000 1.600 700 800 200 3,000 Kleiner Merchandising Company Accumulated depreciation........... $700 Beginning inventory ..... .. Owner, Capital....... 950 Ending inventory 1,700 Operating expenses..... 1.450 Purchases... 3,900 Sales . . 9,500 Owner. Withdrawals. 1.600 1300 B. Preparing journal entries- perpetual system Journalize the following merchandising transactions for Chilton Systems assuming it uses a perpetual inventory system. 1. On November 1, Chilton Systems purchases merchandise for $1,500 on credit with terms of 2/5, n 30, FOB shipping point, invoice dated November 1. 2. On November 5, Chilton Systems pays cash for the November 1 purchase. 3. On November 7. Chilton Systems discovers and returns $200 of defective merchandise purchased on November 1 for a cash refund. 4. On November 10, Chilton Systems pays $90 cash for transportation costs with the November 1 purchase. 5. On November 13, Chilton Systems sells merchandise for $1,600 on credit. The cost of the merchandise is $800. 6. On November 16, the customer returns merchandise from the November 13 transaction The returned items are priced at $300 and cost $130; the items were not damaged and were returned to inventory