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, 20Y6 (unless otherwise indicated), are as follows. Assume all accounts have normal balances.

Account Number	Account	Amount
110	Cash	$83,600
112	Accounts Receivable	233,900
115	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 DepreciationStore Equipment	56,700
210	Accounts Payable	96,600
212	Customers Refunds Payable	50,000
310	Common Stock	100,000
311	Retained Earnings	585,300
312	Dividends	$135,000
410	Sales	5,069,000
510	Cost of Goods Sold	2,823,000
520	Sales Salaries Expense	664,800
521	Advertising Expense	281,000
529	Miscellaneous Selling Expense	12,600
530	Office Salaries Expense	382,100
531	Rent Expense	83,700
539	Miscellaneous Administrative Expense	7,800

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 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.

Date	Description		Debit	Credit
May 2	Accounts Payable-Korman Co.Accounts Receivable-Korman Co.Rent ExpenseSalesSalaries Payable
	Accounts Payable-Korman Co.Accounts Receivable-Korman Co.Rent ExpenseSalesSalaries Payable
May 2	CashCustomer Refunds PayableCost of Goods SoldInventoryRent Expense
	CashCustomer Refunds PayableCost of Goods SoldInventoryRent Expense

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	Inventory
	Accounts Payable-Martin Co.

May 13: Paid for merchandise purchased on May 3.

Date	Description		Debit	Credit
May 13	Accounts Payable-Martin Co.
	Cash			35,280
	Accounts Payable-Martin Co.Accounts Receivable-Martin Co.InventorySales DiscountsStore Supplies Expense

May 17: Received cash from sale of May 2.

Date	Description		Debit	Credit
May 17	Cash
	Accounts ReceivableKorman Co.

May 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.

Date	Description		Debit	Credit
May 21-Sales	Accounts Receivable-Crescent Co.
	Accounts ReceivableCashCost of Goods SoldInventorySalesCash
May 21-Cost	CashCost of Goods SoldInventorySalesSales DiscountsCash
	Accounts ReceivableCashCost of Goods SoldInventorySales DiscountsAccounts Receivable

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

Date	Description		Debit	Credit
May 21

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

Date	Description		Debit	Credit
May 21

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

Date	Description		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		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		Debit	Credit
May 26-Refund
May 26-Cost

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

Date	Description		Debit	Credit
May 28

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

Date	Description		Debit	Credit
May 29

May 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.

Date	Description		Debit	Credit
May 30-Sales
May 30-Cost

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

Date	Description		Debit	Credit
May 31

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

Date	Description		Debit	Credit
May 31