Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2016 (unless otherwise indicated), are as follows:

110	Cash	$ 83,600
112	Accounts Receivable	233,900
115	Merchandise Inventory	624,400
116	Estimated Returns Inventory	28,000
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	Salaries Payable
212	Customers Refunds Payable	50,000
310	Common Stock	100,000
311	Retained Earnings	585,300
312	Dividends	135,000
313	Income Summary
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

Journal Entries

5/1 Rent Expense 5000

Cash 5000

5/3 Merchandise Expense 35280

Accounts payable 35280

5/4 Merchandise Inventory 600

Cash 600

5/6 Cost of Merchandise Sold 41000

Merchandise Inventory 41000

5/6 Accounts Payable 67130

Sales 67130

5/7 Cash 22300

Accounts Receivable 22300

5/10 Cost of Merchandise Sold 32000

Merchandise Inventory 32000

5/10 Cash 4000

Sales 4000

5/13 Accounts Payable 35280

Cash 35280

5/15 Advertising Expense 11000

Cash 11000

5/16 Cash 67130

Accounts Receivable 67130

5/19 Accounts Payable 33450

Cash 33450

5/19 Merchandise Inventory 18700

Cash 18700

5/19 Customer Refunds Payable 13230

Cash 13230

5/20 Merchandise Inventory 8000

Estimated Returns Inventory 8000

5/20 Accounts Receivable 108900

Sales 108900

5/20 Cost of Merchandise Sold 70000

Merchandise Inventory 70000

5/21 Accounts Receivable 2300

Cash 2300

5/21 Cash 42900

Accounts Receivable 42900

5/21 Merchandise Inventory 87120

Accounts Payable 87120

5/24 Accounts Payable 4950

Merchandise Inventory 4950

5/26 Customer Refunds Payable 7500

Cash 7500

5/28 Sales Salaries Expense 56000

Office Salaries Expense 56000

5/29 Store Supplies 2400

Cash 2400

5/30 Accounts Receivable 77175

Sales 77175

5/30 Cash 111200

Accounts Receivable 111200

5/30 Cost of Merchandise Sold 47000

Merchandise Inventory 47000

5/30 Accounts Receivable 72300

Cash 72300

5/31 Accounts Payable 82170

Cash 82170

5/31 Store Supplies Expense 9800

Store Expense 9800

5/31 Insurance Expense 12000

Prepaid Expense 12000

5/31 Depreciation Expense 1400

Accumulated Depreciation-Store Equipment 1400

5/31 Sales Salaries Expense 7000

Office Salaries Expense 6600

Salaries Payable 13600

5/31 Cost of Merchandise Sold 78750

Merchandise Inventory 78750

5/31 Estimated Returns Inventory 35000

Cost of Merchandise Sold 35000

5/3 Sales 60000

Customers Refunds Payable 60000

Instructions: Prepare a closing entries journal