Novak Corp. $5,500 and Common Stock of $5,500. eted the following dising transactions in the month of May. At the beginning of May, the ledger of Novak Corp. sh purchased merchandise on account from Gray's wholesale Supply $4,200, terms 2/ 10, /30. 2 Sold merchandise on account $1,600, terms 1/10, n/30. The cost of the merchandise sold was $1,200. 5 Received credit from Gray's Wholesale Supply for merchandise returned $400. 9 Received collections in full, less discounts, from customers billed on sales of $1,600 on May 2. 10 Paid Gray's Wholesale Supply in full, less discount. 11 Purchased supplies for cash $350. 12 Purchased merchandise for cash $1,500. 15 Received refund for poor quality merchandise from supplier on cash purchase $150. 17 Purchased merchandise from Amland Distributors $1,400, FOB shipping point, terms 2/10, n/30. 19 Paid freight on May 17 purchase $170. 24 Sold merchandise for cash $2,900. The merchandise sold had a cost of $1,800. 25 Purchased merchandise on account from Horvath, Inc. $600, FoB destination, terms 2/10, n/30. 27 Paid Amland Distributors in full, less discount. 29 Made refunds to cash customers 31 Sold merchandise on account $1,500, terms n/30. The cost of the merchandise sold was $500. May 1 for defective merchandise $70. The returned merchandise had a fair value of $30. Novak Corp. s chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 311 C Stock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Journalize the transactions using a perpetual inventory system. (Credit account titles are autor indent manually. If no entry is required, select "No Entry" for the account titles and ent the order presented in the problem.) Date Account Titles and Explanation Debit Credit May 1 v 411 411 May 2 v 1584 1200 (To record credit sale) May 5 v 400 400 (To record cost of merchandise sold) May 9 1600 1600 May 9 1200 1500 84 May 10v May 11 May 12 May 15 v May 17v May 19 May 24 v (To record cash sale) (To record cost of merchandise sold) May 25 (To record merchandise returned) May 27v (To record cost of merchandise returned) May 29 (To record credit sale) May 31 w (To record cost of merchandise sold)