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 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. Date Debit Credit Account Titles and Explanation May 1Inventory 4200 4200 Accounts Payable May 2 Accounts Receivable 1500 1500 Sales Revenue (To record credit sale) May 2Cost of Goods Sold 1200 1200 Inventory To record cost of merchandise sold) May 5Accounts Payable 400 400 Inventory May 9 Cash 1584 16 Sales Discounts Accounts Receivable 1600 May 10 ACcounts Payable 3800 Cash 3716 84 Purchase Discounts May 11 Supplies 350 Cash 350 1500 May 12 Inventory 1500 Cash 150 May 15 Cash Inventory 150 100 May 17 Inventory 100 Accounts Payable May 19 Inventory 170 Cash 170 2900 May 24 Accounts Receivable 2900 Sales Revenue To record cash sale) May 24 Cost of Goods Sold 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 29Sales Returns and Allowances 70 Cash 70 To record merchandise returned) May 29 Sales Returns and Allowances 30 Cash 30 To record cost of merchandise returned) 1500 May 31 Accounts Receivable 1500 Sales Revenue May 29 Sales Returns and Allowances 30 Cash 30 (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) Enter the beginning cash and capital balances and post the transactions. (Post entries in the order of journal entries presented in the previous part.) Cash No. 101 Balance Explanation Ref. Debit Credit Date Balance JI JI JI JI J1 JI Accounts Receivable No. 112 Date Explanation Ref. Debit Credit Balance JI No. 112 Accounts Receivable Balance Credit Debit Explanation Ref. Date No. 120 Inventory Date Balance Credit Debit Explanation Ref. J1 J1 J1 J1 J1 J1 J1 No. 126 Supplies Balance Credit Debit Explanation Ref. Date J1
