Novak Corp.completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Nova showed Cash of $5,500 and Common Stock of $5,500. May 1 2 5 9 10 11 12 15 Purchased merchandise on account from Gray's Wholesale Supply $4,200, terms 2/10, n/30. Sold merchandise on account $1,600, terms 1/10,n/30. The cost of the merchandise sold was $1,200. Received credit from Gray's Wholesale Supply for merchandise returned $400. Received collections in full, less discounts, from customers billed on sales of $1,600 on May 2. Paid Gray's Wholesale Supply in full, less discount. Purchased supplies for cash $350. Purchased merchandise for cash $1,500. Received refund for poor quality merchandise from supplier on cash purchase $150. Purchased merchandise from Amland Distributors $1,400, FOB shipping point, terms 2/10,n/30. Paid freight on May 17 purchase $170. Sold merchandise for cash $2,900. The merchandise sold had a cost of $1,800. Purchased merchandise on account from Horvath, Inc. $600, FOB destination, terms 2/10,n/30. Paid Amland Distributors in full, less discount. Made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $30. Sold merchandise on account $1,500, terms n/30. The cost of the merchandise sold was $500. 17 19 24 25 27 29 31 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 Common Stock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No.505 Cost of Goods Sold. (b) Enter the beginning cash and common stock balances and post the transactions. (Post entries in the order of journal entries presented in the previous question.) Cash Date No. 101 Balance Debit Credit Explanation Ref. Balance 31 31 31 31 31 31 31 31 31 Accounts Receivable Date Explanation No. 112 Balance Ref. Debit Credit J1 31 31 Inventory Date No. 120 Balance Debit Credit Explanation Ref. 31 31 31 31 J1 31 31 31 31 31 31 J1 J1 Supplies Date No. 126 Balance Explanation Ref. Debit Credit 31 Accounts Payable Date Explanation Ref. 31 No. 201 Balance Debit Credit J1 > 31 1 1