Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 20Y7 (unless otherwise indicated), are as follows:

110	Cash	$83,600
112	Accounts Receivable	233,900
115	Merchandise Inventory	652,400
117	Prepaid Insurance	16,800
118	Store Supplies	11,400
123	Store Equipment	569,500
124	Accumulated DepreciationStore Equipment	56,700
210	Accounts Payable	96,600
211	Customer Refunds Payable	50,000
212	Salaries Payable
310	Lynn Tolley, Capital, June 1, 20Y6	685,300
311	Lynn Tolley, Drawing	135,000
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

Part 1: Using the attached spreadsheet, journalize the transactions for May, the last month of the fiscal year, below.

Part 2: Post the journal to the general ledger you created in Part 1, extending 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.

If an amount box does not require an entry, leave it blank.

May 1: Paid rent for May, $5,000.

Description	Post. Ref.	Debit	Credit

May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.

Description	Post. Ref.	Debit	Credit

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

Description	Post. Ref.	Debit	Credit

May 6: Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000.

Description	Post. Ref.	Debit	Credit

May 7: Received $22,300 cash from Halstad Co. on account.

Description	Post. Ref.	Debit	Credit

May 10: Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.

Description	Post. Ref.	Debit	Credit

May 13: Paid for merchandise purchased on May 3.

Description	Post. Ref.	Debit	Credit

May 15: Paid advertising expense for last half of May, $11,000.

Description	Post. Ref.	Debit	Credit

May 16: Received cash from sale of May 6.

Description	Post. Ref.	Debit	Credit

May 19: Purchased merchandise for cash, $18,700.

Description	Post. Ref.	Debit	Credit

May 19: Paid $33,450 to Buttons Co. on account.

Description	Post. Ref.	Debit	Credit

May 20: Paid Korman Co. a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co. kept the merchandise.

Description	Post. Ref.	Debit	Credit

May 20: Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the merchandise sold was $70,000.

Description	Post. Ref.	Debit	Credit

May 21: For the convenience of Crescent Co., paid freight on sale of May 20, $2,300.

Description	Post. Ref.	Debit	Credit

May 21: Received $42,900 cash from Gee Co. on account.

Description	Post. Ref.	Debit	Credit

May 21: Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.

Description	Post. Ref.	Debit	Credit

May 24: Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.

Description	Post. Ref.	Debit	Credit

May 26: Refunded cash on sales made for cash, $800. The defective merchandise was not returned by the customer.

Description	Post. Ref.	Debit	Credit

May 28: Paid sales salaries of $56,000 and office salaries of $29,000.

Description	Post. Ref.	Debit	Credit

May 29: Purchased store supplies for cash, $2,400.

Description	Post. Ref.	Debit	Credit

May 30: Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000.

Description	Post. Ref.	Debit	Credit

May 30: Received cash from sale of May 20 plus freight paid on May 21.

Description	Post. Ref.	Debit	Credit

May 31: Paid for purchase of May 21, less return of May 24.

Description	Post. Ref.	Debit	Credit