Palisade Creek Co$.$ is a merchandising business that uses the perpetual inventory system. Palisade Creek does not accept merchandise returns, but does grant refunds or credits for defective or damaged merchandise. The account balances for Palisade Creek Co$.$ as of May $1,20$Y$7($unless otherwise indicated$),$ are as follows:

Account Number Account Amount

$110$ Cash $$83,600$

$112$ Accounts Receivable $233,900$

$115$ 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 $1,20$Y$6685,300$

$311$ Lynn Tolley, Drawing $135,000$

$410$ Sales $5,069,000$

$510$ Cost of Goods 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 $7,800$

$**$Part $1$: Journalize the transactions below for May, the last month of the fiscal year. If an amount box does not require an entry, leave it blank.

May $1$: Paid Rent For May, $$5000.$

May $3$: Purchased Merchandise on Account From Martin Co$.,$ Terms $2/10,$ n$/30,$ FOB Shipping Point, $$36000.$

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

May $6$: Sold merchandise on account to Korman Co$.,$ n$/10,$ FOB Shipping point, $$68500.$ The cost of merchandise sold was $$41000.$

May $7$: Received $$22300$ cash from Halstad Co on account

May $10$: Sold merchandise for cash $$54000.$ The cost of merchandise sold was $$32000.$

May $13$: Paid for merchandise purchased on May $3$

May $15$: Paid advertising expense for last half of May $$11000.$

May $16$: Received cash from sale of May $6.$

May $19$: Purchased merchandise for cash $$18700.$

May $19$: Paid $$33450$ to Buttons Co on account

May $20$: Paid Korman Co a cash refund of $$5000$ for damaged merchandise from sale of May $6.$ Korman Co kept the merchandise

May $20$: Sold merchandise on account to Crescent Co$.$ terms n$/$eom$,$ FOB shipping point $$110000.$ The cost of the merchandise sold was $$70000.$

May $21$: For the convenience of Crescent Co paid freight on sale of May $20$ $$2300.$

May $21$: Received $$42900$ cash from Gee Co on account

May $21$: Purchased merchandise on account from Osterman Co terms $1/10,$ n$/30,$ FOB destination $$88000$

May $24$: Returned damaged merchandise purchased on May $21$ receiving a credit memo from the seller for $$5000.$

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 $$56000$ and office salaries of $$29000$

May $29$: Purchased store supplies for cash $$2400$

May $30$: Sold merchandise on account to Turner Co terms n$/30,$ FOB shipping point $$78750.$ The cost of the merchandise sold was $$47000$

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 $24$

part $2$: using a spreadsheet, post the journal entries from part $1$ to the general ledger. extend the month end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers.