May 1: Paid rent for May, $5,000.

May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.

May 4: Paid freight on purchase of May 3, $600.

May 6: Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000.

May 7: Received $22,300 cash from Halstad Co. on account.

May 10: Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.

May 13: Paid for merchandise purchased on May 3.

May 15: Paid advertising expense for last half of May, $11,000.

May 16: Received cash from sale of May 6.

May 19: Purchased merchandise for cash, $18,700.

May 19: Paid $33,450 to Buttons Co. on account.

May 20: Paid Korman Co. a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co. kept the merchandise.

May 20: Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the merchandise sold was $70,000.

May 21: For the convenience of Crescent Co., paid freight on sale of May 20, $2,300.

May 21: Received $42,900 cash from Gee Co. on account.

May 21: Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.

May 24: Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.

May 26: Refunded cash on sales made for cash, $800. The defective merchandise was not returned by the customer.

May 28: Paid sales salaries of $56,000 and office salaries of $29,000.

May 29: Purchased store supplies for cash, $2,400.

May 30: Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000.

May 30: Received cash from sale of May 20 plus freight paid on May 21.

May 31: Paid for purchase of May 21, less return of May 24.

NOTE: You must complete parts and 2 before completing part 3. Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank. Palisade Creek Co. Unadjusted Trial Balance May 31, 2017 Debit Balances Credit Balances Cash 84,500 X Accounts Receivable 245,875 Merchandise Inventory 583,950 Prepaid Insurance 16,800 Store Supplies 13,800 Store Equipment 569,500 Accumulated Depreciation Store Equipment 56,700 Accounts Payable 63,150 Customer Refunds Payable 29,270 x Salaries Payable 0 0 Lynn Tolley, Capital 685,300 Lynn Tolley, Drawing 135,000 Sales 5,376,205 Cost of Merchandise Sold 3,013,000 Sales Salaries Expense 720,800 Advertising Expense 292,000 Depreciation Expense o 0 Store Supplies Expense o 0 Miscellaneous Selling Expense 12,600 Office Salaries Expense 411,100 Rent Expense 88,700 Insurance Expense o 0 Miscellaneous Administrative Expense 7,800 6,235,400 X 6,210,625 X Feedback Part 1 and Part 2: Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2017 (unless otherwise indicated), are as follows: 110 Cash $83,600 112 Accounts Receivable 233,900 115 Merchandise Inventory 652,400 117 Prepaid Insurance 16,800 118 Store Supplies 11,400 123 Store Equipment 569,500 124 Accumulated Depreciation Store Equipment 56,700 210 Accounts Payable 96,600 211 Customer Refunds Payable 50,000 212 Salaries Payable 310 Lynn Tolley, Capital, June 1, 2016 685,300 311 Lynn Tolley, Drawing 135,000 410 Sales 5,069,000 510 Cost of Merchandise Sold 2,823,000 520 Sales Salaries Expense 664,800 521 Advertising Expense 281,000 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 12,600 530 Office Salaries Expense 382,100 531 Rent Expense 83,700 532 Insurance Expense 539 Miscellaneous Administrative Expense 7,800 NOTE: You must complete parts and 2 before completing part 3. Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank. Palisade Creek Co. Unadjusted Trial Balance May 31, 2017 Debit Balances Credit Balances Cash 84,500 X Accounts Receivable 245,875 Merchandise Inventory 583,950 Prepaid Insurance 16,800 Store Supplies 13,800 Store Equipment 569,500 Accumulated Depreciation Store Equipment 56,700 Accounts Payable 63,150 Customer Refunds Payable 29,270 x Salaries Payable 0 0 Lynn Tolley, Capital 685,300 Lynn Tolley, Drawing 135,000 Sales 5,376,205 Cost of Merchandise Sold 3,013,000 Sales Salaries Expense 720,800 Advertising Expense 292,000 Depreciation Expense o 0 Store Supplies Expense o 0 Miscellaneous Selling Expense 12,600 Office Salaries Expense 411,100 Rent Expense 88,700 Insurance Expense o 0 Miscellaneous Administrative Expense 7,800 6,235,400 X 6,210,625 X Feedback Part 1 and Part 2: Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2017 (unless otherwise indicated), are as follows: 110 Cash $83,600 112 Accounts Receivable 233,900 115 Merchandise Inventory 652,400 117 Prepaid Insurance 16,800 118 Store Supplies 11,400 123 Store Equipment 569,500 124 Accumulated Depreciation Store Equipment 56,700 210 Accounts Payable 96,600 211 Customer Refunds Payable 50,000 212 Salaries Payable 310 Lynn Tolley, Capital, June 1, 2016 685,300 311 Lynn Tolley, Drawing 135,000 410 Sales 5,069,000 510 Cost of Merchandise Sold 2,823,000 520 Sales Salaries Expense 664,800 521 Advertising Expense 281,000 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 12,600 530 Office Salaries Expense 382,100 531 Rent Expense 83,700 532 Insurance Expense 539 Miscellaneous Administrative Expense 7,800