Problem 5-02A a-c (Part Level Submission) (Video) Crane Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Crane showed Cash of $5,500 and Owner's Capital of $5,500 May Purchased merchandise on account from Braun's Wholesale Supply $4,200, terms 2/10, n/30. 1 2 Sold merchandise on account $1,600, terms 1/10, n/30. The cost of the merchandise sold was $1,200. 5 Received credit from Braun's Wholesale Supply for merchandise returned $400. 9 Received collections in full, less discounts, from customers billed on sales of $1,600 on May 2. 10 Paid Braun's Wholesale Supply in full, less discount. 11 Purchased supplies for cash $350. 12 Purchased merchandise for cash $1,500 15 Received refund for poor quality merchandise from supplier on cash purchase $150. 17 Purchased merchandise from Valley Distributors $1,400, FOB shipping point, terms 2/10, n/30. 19 Paid freight on May 17 purchase $170. 24 Sold merchandise for cash $2,900. The merchandise sold had a cost of $1,800. 25 Purchased merchandise on account from Lumley, Inc. $600, FOB destination, terms 2/10, n/30. 27 Paid Valley Distributors in full, less discount. 29 Made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $30. 31 Sold merchandise on account $1,500, terms n/30. The cost of the merchandise sold was $500. Crane Hardware's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 301 Owner's Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. Your answer is partially correct. Try again Journalize the transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Debit Account Titles and Explanation Credit May 1Inventory 4200 4200 Accounts Payable May 2 Accounts Receivable 1500 Sales Revenue 1500 (To record credit sale) May 2Cost of Goods Sold 1200 Inventory 1200 To record cost of merchandise sold) May 5 Accounts Payable 400 400 Inventory May 9 Cash 1584 16 Sales Discounts Accounts Receivable 1600 3800 May 10 Accounts Payable 3716 Cash Purchase Discounts 84 350 May 11 Supplies Cash 350 1500 May 12 Inventory 1500 Cash 150 May 15 Cash 150 Inventory May 17 100 Inventory 100 Accounts Payable May 19Inventory 170 Cash 170 2900 May 24 Accounts Receivable Sales Revenue (To record cash sale) May 24 Cost of Goods Sold 2900 1800 Inventory 1800 To record cost of merchandise sold) May 25 Inventory 600 Accounts Payable 600 May 27 Accounts Payable 1372 Cash 28 Sales Discounts 1400 May 29 Sales Returns and Allowances 70 Cash 70 To record merchandise returned) To record merchandise returned) May 29 Sales Returns and Allowances 30 30 Cash (To record cost of merchandise returned) May 31 Accounts Receivable 1500 Sales Revenue 1500 (To record credit sale) May 31 Cost of Goods Sold 500 Inventory 500 (To record cost of merchandise sold) (c) Prepare an income statement through gross profit for the month of May 2020. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45) CRANE HARDWARE STORE Income Statement (Partial) SHOW LIST OF ACCOUNTS
