Mollys Greenhouse supplies bedding plants and other gardening products to a variety of stores across Alberta and also has a local greenhouse open to the public. Mollys uses a perpetual inventory system and the earnings approach for revenue recognition. Transactions for the business are shown below:

MAY.

2 Purchaded 500 decorative hanging baskets from Planters R Us, on account, at a cost of $27 each, terms 2/10, n/30. FOB shipping point.

3 The correct company paid cash for the $140 shipping charges.

4. Sold 200 hanging baskets to a hardware store in the city, on account, for a total invoice price of $10,000. Terms are 1/10, n/30 and the cost was $27 per basket. Mollys paid the shipping charge of $75 on the same day.

5 Received a credit from Planters R Us for the return of 50 hanging baskets that had defective hangers.

7 20 of the baskets from the sale of May 4 were returned to the greenhouse for a full refund because the customer did not have enough room to store them.

12 Made a payment on account for the balance owing to Planters R Us for the purchase of May 2.

13 Received a cheque for the appropriate amount from the hardware store for the sale of May 4.

Question 20 Molly's Greenhouse supplies bedding plants and other gardening products to a variety of stores across Alberta and also has a local greenhouse open to the public Molly's uses a perpetual Inventory system and the earings approach for revenue recognition. Transactions for the business are shown below: May 2 Purchased 500 decorative hanging baskets from Planters R Us, on account, at a cost of $27 each, terms 2/10, /30. FOB shipping point. 3 The correct company paid cash for the $140 shipping charges. 4 Sold 200 hanging baskets to a hardware store in the city, on account, for a total invoice price of $10,000. Terms are 1/10, 1/30 and the cost was $27 per basket. Molly's paid the shipping charge of $75 on the same day. 5 Received a credit from Planters R Us for the return of 50 hanging baskets that had defective hangers. 7 20 of the baskets from the sale of May 4 were returned to the greenhouse for a full refund because the customer did not have enough room to store 12 Made a payment on account for the balance owing to Planters R Us for the purchase of May 2. 13 Received a cheque for the appropriate amount from the hardware store for the sale of May 4. them. Prepare journal entries to record the above transactions using the perpetual method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record Journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit Date (To record sales on account.) (To record cost of goods sold.) (To record cash payment for freight.) (To record credit for sales return.) (To record cost of goods returned.) May 13 LINK TO TEXT Prepare journal entries to record the above transactions using the periodic method. (Credit account titles are automatically entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record sales on account.) (To record sales on account.) (To record cash payment for freight.) May 13