Part 1 and Part 2 Palisade Creek Co. is a retail business that uses the perpetual Inventory system. The account balances for Palisade Creek as of May 1, 2016 (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 Depreciation --Store 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 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 11 Pald rent for May, $5,000. Date Description Post. Ref. Debit Credit May Rent Expense 5,000 0 0 5,000 Cash May 2: Sold merchandise on account to Korman Co., terms w/15, FOB shipping point, $68,500. The cost of the goods sold was $41,000. Date Description Post. Ref. Debit Credit May 2 0 0 O May 2 May 3: Purchased merchandise on account from Martin Co., terms 2/10, 1/30, FOB shipping point, $36,000 Date Description Post. Ref. Debit Credit May 3 Inventory 35,280 0 Accounts Payable-Martin Co. O 35,280 Debit Credit May 4: Pald freight on purchase of May 3, $600. Date Description Post. Ref. May a Inventory Cash 600 0 0 600 Credit May 7: Received $22,300 cash from Halstad Co. on account Description Post. Rer. May Casti Date Debit 23,300 0 22,300 Accounts Receivable-Halstad Co May 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 Date Description Post. Ref. Debit Credit May 10-Sales Sales Discounts 0 0 0 0 0 0 May 10-Cost 0 May 13: Paid for merchandise purchased on May 3. Date Description Post. Ref. May 13 Accounts Payable-Martin Co. Debit Credit 35,280 0 Cash o 35,280 O 0 May 15: Paid advertising expense for last half of May, $11,000 Data Description Post. Ref. Debit Credit May 15 0 0 Debit Credit May 17: Received cash from sale of May 2. Date Description Post. Ref. 0 0 May 17 0 0 Debit Credit May 19: Purchased merchandise for cash, $18,700. Date Description Post. Ref. May 19 0 0 0 Debit Credit May 19: Paid $33,450 to Buttons Co. on account. Date Description Post. Ref. May 19 0 0 0 0 May 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. Date Description Post. Ref. Debit Credit May 20-Refund 0 0 0 0 May 20-Cost May 21: Sold merchandise on account to Crescent Co, terms n/com, FOB shipping point, $110,000. The cost or he goods sold was $70,000. Post. Ref. Description Debit Credit Date May 21-Sales May 21-Cost May 21: For the convenience of Crescent Co., paid freight on sale of May 21, $2,300 Date Description Post. Rel. Debit Credit May 21 Debit Credit May 21: Received $42,900 cash from Gee Co. on account. Date Description Post. Ref. 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
