Problem 5-2A (Part Level Submission) npany completed the following merchandising transactions in the month of May. At the bepinning of May, the ledger of Pharoah Company showed Cash of $5,000 and Common Stock of $5,000. May Sd merrhandise on account e1 a00, terms 1/10, n/30. The cost of the merch 1.000 Received credit from Gray's Wholesale Supply for merchandise returned $200. Recaived collections in full, less discounts, from customers billed on sales of $1,900 on May 2. less discount. Purchased sSunniliec for cash s400 12 Purchased merchandise for cash $1,200. 15 Received refund for poor quality merchandise from supplier on cash purchase $200. ld butors $1.100, FOe shipping point, terms 2/10, n/30 24 Sold marchandise cash ,300. The marchandise sold had a cost of $1,000. 25 Purchased merchandise on account from Horvath, Inc. $650, FOB destination, terms 2/10, n/30. Pald Amland Distributors In full, less discount. 2 merchandise $30. The returned merchandise had a fair value of s20. 31 Sold merchandise- account $1.000, terms n/30, The cost of the merchandise sold was $600. accounts includes the followina: No. 101 Cash, No. 112 Accounts Receivable. No. 120 Inventory, No. 126 Supplies, Np. 201 Apcounts Payable, No. 311 Comman Stock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Phareah s chart Discounts, and No. 505 Cost of Gapds Sold (a) 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. If no entry is required, select "No Entry" for the account titles and enter "0" I amounts. Record iournal entries lo the order presented in the problem.) or the Account Titles and Explanation Credit Date Debit May 1 Inventory 4000 Accounts Payable 4000 May 2 Accounts Receivable 1900 Sales Revenue 1900 (To record credit sale) IMay 2 Cost of Goods Sold 1000 1000 Inventory (To record cost of merchandise sold) May 5 Accounts Receivable Inventory May 9 May 10 May 11 May 12 May 15 May 17 Inventory 1100 Accounts Payable 1100 May 19 Inventory 110 Cash 110 May 24 Accounts Receivable 3300 Inventory 3300 (To record cash sale) May 24 Cost of Goods Sold 1900 1900 Inventory (To record cost of merchandise sold) May 25 Inventory 650 (TO record CoSt of mtaretntse sn May 25 Inventory 650 Accounts Payable 650 May 27 x Sales Returns and Allowances May 29 80 Cash B0 (To record merchandise returned) May 29 Cost of Goods Sold 20 (To record cost of merchandise returned) (To record cost of merchandise returned) May 31 Accounts Receivable 1000 Sales Revenue 1000 (To record credit sale) Cost of Goods Sold May 31 600 Inventory 600 (To record cost of merchandise sold)
