Prepare a schedule that shows the impact of these transactions. Use the following headings

com QUESTION 2 Not completeMarked out of 30.00 P Fag question Effects of Transactions on the Inventory Account-Perpetual Systenm Watt Wholesale Company purchases merchandise from a variety of manufacturers and sells the merchandise to a variety of retailers. All sales are subject to a cash discount (2/10, n/30). Watt uses a perpetual inventory system. The May 1 balance in Watt's Inventory account was a $70,000 debit. The following transactions occurred during May. May 2 Purchased $5,500 of merchandise from Ajax Manufacturing: terms are 1/10,n30 Paid $170 freight on the May 2 purchase 12 Paid Ajax for the May 2 purchase 14 Purchased $4,000 of merchandise from Baker Manufacturing terms are 2/10, n/45. Received a $300 alowance on the May 14 purchase since some of the merchandise was the wrong color. All of 16 the merchandise is salable at regular prides 18 Purchased $3,500 of merchandse from Charles Industries; terms are 2/10, n/30 19 Sold merchandise with a lest price of $3.000 ($2,200 cost) to Daytime Industries 22 Daytme Industries returned 30 percent of the merchandise from the May 19 sale 26 Paid Baker Manufacturing for the May 14 purchase 29 Paid Charles Industries for the May 18 purchase Required Prepare a schedule that shows the impact of these transactions on Watt's Inventory account following headings on Watt's Inventory account. Use the Account 5 6 8 9