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Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 20Y6 (unless

Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 20Y6 (unless otherwise indicated), are as follows. Assume all accounts have normal balances.

110 Cash $83,600 312 Dividends $135,000
112 Accounts Receivable 233,900 410 Sales 5,069,000
115 Inventory 624,400 510 Cost of Goods Sold 2,823,000
116 Estimated Returns Inventory 28,000 520 Sales Salaries Expense 664,800
117 Prepaid Insurance 16,800 521 Advertising Expense 281,000
118 Store Supplies 11,400 522 Depreciation Expense
123 Store Equipment 569,500 523 Store Supplies Expense
124 Accumulated DepreciationStore Equipment 56,700 529 Miscellaneous Selling Expense 12,600
210 Accounts Payable 96,600 530 Office Salaries Expense 382,100
211 Salaries Payable 531 Rent Expense 83,700
212 Customers Refunds Payable 50,000 532 Insurance Expense
310 Common Stock 100,000 539 Miscellaneous Administrative Expense 7,800
311 Retained Earnings 585,300 539

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, $5,000.

Date Description Post. Ref. Debit Credit
May 1

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

Date Description Post. Ref. Debit Credit
May 3

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

Date Description Post. Ref. Debit Credit
May 4

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

Date Description Post. Ref. Debit Credit
May 6-Sales
May 6-Cost

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

Date Description Post. Ref. Debit Credit
May 7

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

Date Description Post. Ref. Debit Credit
May 10-Sales
May 10-Cost

May 13: Paid for merchandise purchased on May 3.

Date Description Post. Ref. Debit Credit
May 13

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

Date Description Post. Ref. Debit Credit
May 15

May 16: Received cash from sale of May 6.

Date Description Post. Ref. Debit Credit
May 16

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

Date Description Post. Ref. Debit Credit
May 19

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

Date Description Post. Ref. Debit Credit
May 19

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 returned merchandise was $8,000.

Date Description Post. Ref. Debit Credit
May 20-Refund
May 20-Cost

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

Date Description Post. Ref. Debit Credit
May 20-Sales
May 20-Cost

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

Date Description Post. Ref. Debit Credit
May 21

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

Date Description Post. Ref. Debit Credit
May 21

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

Date Description Post. Ref. Debit Credit
May 21

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

Date Description Post. Ref. Debit Credit
May 24

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

Date Description Post. Ref. Debit Credit
May 26-Refund
May 26-Cost

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

Date Description Post. Ref. Debit Credit
May 28

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

Date Description Post. Ref. Debit Credit
May 29

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

Date Description Post. Ref. Debit Credit
May 30-Sales
May 30-Cost

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

Date Description Post. Ref. Debit Credit
May 30

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

Date Description Post. Ref. Debit Credit
May 31

Part 2: Using the attached 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.

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