Palisade Creek Co$.$ is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May $1,20$Y$6($unless otherwise indicated$),$ are as follows:

$110$ Cash $$83,600312$ Dividends $$135,000$

$112$ Accounts Receivable $233,900410$ Sales $5,069,000$

$115$ Inventory $624,400510$ Cost of Goods Sold $2,823,000$

$116$ Estimated Returns Inventory $28,000520$ Sales Salaries Expense $664,800$

$117$ Prepaid Insurance $16,800521$ Advertising Expense $281,000$

$118$ Store Supplies $11,400522$ Depreciation Expense $$

$123$ Store Equipment $569,500523$ Store Supplies Expense $$

$124$ Accumulated Depreciation$$Store Equipment $56,700529$ Miscellaneous Selling Expense $12,600$

$210$ Accounts Payable $96,600530$ Office Salaries Expense $382,100$

$211$ Salaries Payable $531$ Rent Expense $83,700$

$212$ Customer Refunds Payable $50,000532$ Insurance Expense $$

$310$ Common Stock $100,000539$ Miscellaneous Administrative Expense $7,800$

$311$ Retained Earnings $585,300$

During May, the last month of the fiscal year, the following transactions were completed:

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

$2.$ Sold merchandise on account to Korman Co$.,$ terms n$/15,$ FOB shipping point, $$68,500.$ The cost of the goods sold was $$41,000.$

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

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

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

$10.$ Sold merchandise with a list price of $$61,500$ to customers who used Visa and who redeemed $$7,500$ of point$-$of$-$sale coupons. The cost of the goods sold was $$32,000.$

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

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

$17.$ Received cash from sale of May $2.$

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

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

$20.$ Paid Korman Co$.$ a cash refund of $$13,230$ for returned merchandise from sale of May $2.$ The cost of the returned merchandise was $$8,000.$

Record the following transactions on Page $21$ of the journal:

$21.$ Sold merchandise on account to Crescent Co$.,$ terms n$/$eom$,$ FOB shipping point, $$110,000.$ The cost of the goods sold was $$70,000.$

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

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

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

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

$26.$ Refunded cash on sales made for cash, $$7,500.$ The cost of the merchandise returned was $$4,800.$

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

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

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

$31.$ Received cash from sale of May $21$ plus freight.

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

Instructions

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 $()$ in the Posting Reference column. Journalize the transactions for May, starting on Page $20$ of the journal.

Post the journal to the general ledger, 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.

Prepare an unadjusted trial balance.

At the end of May, the following adjustment data were assembled. Analyze and use these data to complete $(5)$ and $(6).$

a$.$ Inventory on May $31$ $$570,000$

b$.$ Insurance expired during the year $12,000$

c$.$ Store supplies on hand on May $314,000$

d$.$ Depreciation for the current year $14,000$

e$.$ Accrued salaries on May $31$:

$$Sales salaries $$7,000$

$$Office salaries $6,60013,600$

f$.$ The adjustment for customer returns and allowances is $$60,000$ for sales and $$35,000$ for cost of goods sold.