Prepare a schedule that shows the impact of these transactions on Watt's Inventory account. Use the following headings:

Effects of Transactions on the Inventory Account-Perpetual System 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 $130,000 debit. The following transactions occurred during May: May 2 Purchased $11,500 of merchandise from Ajax Manufacturing; terms are 1/10, n/30. 4 Paid $860 freight on the May 2 purchase. 12 Paid Ajax for the May 2 purchase, 14 Purchased $10,000 of merchandise from Baker Manufacturing; terms are 2/10, n/45. 16 Received a $900 allowance on the May 14 purchase since some of the merchandise was the wrong color. All of the merchandise is salable at regular prices. 18 Purchased $10,500 of merchandise from Charles Industries; terms are 2/10, n/30. 19 Sold merchandise with a list price of $1 0,000 ($9,200 cost) to Daytime Industries. 22 Daytime Industries returned 30 percent ofthe 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. Use the following headings: Transaction Debit Amount Credit Amount Account Balance May 1 Balance 5 2 Purchase-Ajax Freight - Ajax 12 Payment-Ajax 14 Purchase - Baker 16 Purchase allowance - Baker 18 Purchase - Charles 19 Sale - Daytime 22 Sales return - Daytime 26 Payment - Baker ooooooooooo ooooooooo 00000000000 29 Payment - Charles