Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2019 (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 Customer Refunds Payable 50,000 212 Salaries Payable 310 Lynn Tolley, Capital, June 1, 2018 685,300 311 Lynn Tolley, Drawing 135,000 410 Sales 5,059,000 510 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, enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark (V) in the Posting Reference column. 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. For a compound transaction, if an amount box does not require an entry, leave it blank or enter"0" May 1: Paid rent for May, $5,000. Description Post. Ref. Debit Credit Rent Expense 5,000 Cash 5,000 V Project TWO eBook May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000 Post. Description Debit Credit Ref. Merchandise Inventory 624,000 Accounts Payable-Martin Co 36,000 May 4: Paid freight on purchase of May 3, $600. Post. Description Debit Credit Ref. Cost of Merchandise Sold 600 Cash 600 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 Accounts Receivable-Korman Co 68,500 X Sales 68.500 X 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. Post. Description Debit Credit Ref.. Accounts Receivable-Korman Co. 68,500 Sales 68,500 Cost of Merchandise Sold 41,000 Merchandise Inventory 41,000 May 7: Received $22,300 cash from Haistad Co. on account. Post. Description Debit Credit Ref. Cash 22,300 Accounts Receivable-Halstad Co. 22,300 May 10: Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. Post. Description Debit Credit Ref. Cash 54,000 Sales 54,000 Cost of Merchandise Sold 32,000 Merchandise Inventory 32,000 May 13: Paid for merchandise purchased on May 3. Post. Description Credit Ref. Accounts Payable-Martin Co Cash 35,280 Debit 36,000 X May 15: Paid advertising expense for last half of May, $11,000 Description Post. Ref. Debit Advertising Expense 11,000 Cash May 16: Received cash from sale of May 6. Description Cash Accounts Receivable-Korman Co. May 19: Purchased merchandise for cash, $18,700, Description Post. Ref. Debit Merchandise Inventory 18,700 Cash Post. Ref. Debit 67,130 Credit 11,000 Credit 68,500 X Credit 18,700 May 19: Paid $33,450 to Buttons Co, on account. Description Post. Ref. Debit Credit Accounts Payable-Buttons Co. 33,450 Cash 33,450 May 20: Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500, and the cost of the returne merchandise was $8,000. Description Post. Ref. Debit Credit Sales 13,500 X Cash 13,230 Merchandise Inventory. 8,000 8,000 Cost of Merchandise Sold May 20: Sold merchandise on account to Crescent Co., terms 1/10, 1/30, FOB shipping point, $110,000. The cost of the merchandise sold was $70,000. Post. Description Debit Credit Ref. Accounts Receivable-Crescent Co. 110,000 Sales 110,000 X Cost of Merchandise Sold 70,000 Merchandise Inventory 70,000 May 21: For the convenience of Crescent Co., paid freight on sale of May 20, $2,300, Post. Description Debit Credit Ref. Accounts Receivable-Crescent Co. 2,300 Cash 2,300 Hay 211 Received $42,900 cash from Gee Lo. On account. Post. Description Debit Credit Ref. Cash 42,900 Accounts Receivable-Gee Co. 42,900 May 21: Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000. Description Post. Ref. Debit Credit Merchandise Inventory 88,000 X Accounts Payable-Osterman Co 88,000 X May 24: Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Post. Description Debit Credit Ref. Accounts Payable-Osterman Co. 5,000 X Merchandise Inventory 5,000 May 26: Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. Post. Description Debit Credit Ref. Sales Returns and Allowances 7,500 Cash 7,500 Merchandise Inventory 4,800 Cost of Merchandise Sold X 4,800 May 28: Paid sales salaries of $56,000 and office salaries of $29,000. Description Post. Ref. Debit Credit Sales Salaries Expense 56,000 Office Salaries Expense 29,000 Cash 85,000 May 29: Purchased store supplies for cash, $2,400. Description Post. Ref. Debit Credit Store Supplies 2,400 Cash 2,400 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. Post. Description Debit Credit Ref. Accounts Receivable-Turner Co 78,750 x Sales 78,750 Cost of Merchandise Sold 47,000 Merchandise Inventory 47,000 May 30: Received cash from sale of May 20 plus freight paid on May 21. Post. Description Debit Ref. Cash 111,200 Accounts Receivabile-Crescent Co May 31: Paid for purchase of May 21, less return of May 24. Post. Description Debit Ref. Accounts Payable-Osterman Co. 83,000 Cash Credit 112,300 Credit 82,170