Reed Corp. is a medium-sized manufacturer of electronic components that supplies Brady Co. with many component parts. Brady Co. also supplies Reed with some of the finished products it develops. Hence, both companies purchase from and sell merchandise to each other. Both companies are located in Oregon, which has no sales tax, and both companies use a perpetual inventory system. Therefore, sales tax does not apply to any of these transactions and you should record merchandise transactions using the perpetual inventory method.

Analyze each transaction (described by rolling over the date) from the perspective of each party. In the first journal space, record each transaction as it affects Reed Corp., on the appropriate day. Then record the same transaction in the bottom journal space as it affects Brady Co.

If no entry is required, select "No entry required" and leave the amount boxes blank or enter "0". For compound entries, if an amount box does not require an entry, leave it blank or enter "0".

Date	Reed Corp.	Debit	Credit
May 2	- Select your answer -Accounts Receivable-Brady Co.Accounts Payable-Brady Co.Insurance ExpenseSalesNo entry requiredCorrect 1 of Item 3
	- Select your answer -Accounts Receivable-Brady Co.Accounts Payable-Reed Corp.Merchandise InventorySalesNo entry requiredCorrect 3 of Item 3
	- Select your answer -Cost of Merchandise SoldCashMerchandise InventorySalaries ExpenseNo entry requiredCorrect 5 of Item 3
	- Select your answer -Cost of Merchandise SoldMerchandise InventorySalaries ExpenseDelivery ExpenseNo entry requiredCorrect 7 of Item 3
May 3	- Select your answer -Accounts Receivable-Brady Co.Accounts Payable-Reed Corp.Insurance ExpenseSales Returns and AllowancesNo entry requiredCorrect 9 of Item 3
	- Select your answer -Insurance ExpenseSales Returns and AllowancesMerchandise InventoryInterest ExpenseNo entry requiredCorrect 11 of Item 3
May 7	- Select your answer -Accounts Payable-Brady Co.Cost of Merchandise SoldMerchandise InventorySalaries ExpenseNo entry requiredCorrect 13 of Item 3
	- Select your answer -Accounts Payable-Brady Co.Merchandise InventorySalaries ExpenseDelivery ExpenseNo entry requiredCorrect 15 of Item 3
May 8	- Select your answer -Accounts Receivable-Brady Co.Accounts Payable-Reed Corp.CashSales RevenueNo entry requiredCorrect 17 of Item 3
	- Select your answer -Insurance ExpenseSales Returns and AllowancesMerchandise InventoryRent ExpenseNo entry requiredCorrect 19 of Item 3
May 10	- Select your answer -Accounts Receivable-Brady Co.CashSales Returns and AllowancesSalaries ExpenseNo entry requiredCorrect 21 of Item 3
	- Select your answer -Accounts Receivable-Brady Co.Insurance ExpenseDelivery ExpenseSales Returns and AllowancesNo entry requiredCorrect 23 of Item 3
	- Select your answer -Accounts Payable-Reed Corp.Cost of Merchandise SoldMerchandise InventoryRent RevenueNo entry requiredCorrect 25 of Item 3
	- Select your answer -Accounts Receivable-Reed Corp.Cost of Merchandise SoldDelivery ExpenseMerchandise InventoryNo entry requiredCorrect 27 of Item 3
May 14	- Select your answer -Accounts Receivable-Brady Co.CashSales Returns and AllowancesInterest ExpenseNo entry requiredCorrect 29 of Item 3
	- Select your answer -Accounts Receivable-Brady Co.CashInterest ReceivableSalesNo entry requiredCorrect 31 of Item 3
May 15	- Select your answer -Accounts Payable-Brady Co.CashMerchandise InventorySales DiscountsNo entry requiredCorrect 33 of Item 3
	- Select your answer -Accounts Payable-Brady Co.CashCost of Merchandise SoldSales DiscountsNo entry requiredCorrect 36 of Item 3
	- Select your answer -Accounts Payable-Reed Corp.Merchandise InventorySalaries ExpenseSales DiscountsNo entry requiredCorrect 39 of Item 3

Date	Brady Co.	Debit	Credit
May 2	- Select your answer -Accounts Payable-Reed Corp.CashInsurance ExpenseMerchandise InventoryNo entry requiredCorrect 42 of Item 3
	- Select your answer -Accounts Receivable-Brady Co.Accounts Payable-Reed Corp.Merchandise InventorySalesNo entry requiredCorrect 44 of Item 3
May 3	- Select your answer -CashMerchandise InventoryInterest ExpenseSales Returns and AllowancesNo entry requiredCorrect 46 of Item 3
	- Select your answer -CashDelivery ExpenseSales Returns and AllowancesMerchandise InventoryNo entry requiredCorrect 48 of Item 3
May 7	- Select your answer -Accounts Receivable-Reed Corp.Accounts Payable-Brady Co.CashSalesNo entry requiredCorrect 50 of Item 3
	- Select your answer -Accounts Receivable-Reed Corp.SalesSalaries ExpenseDelivery ExpenseNo entry requiredCorrect 52 of Item 3
	- Select your answer -Cost of Merchandise SoldMerchandise InventoryRent ExpenseSales Returns and AllowancesNo entry requiredCorrect 54 of Item 3
	- Select your answer -Cost of Merchandise SoldDelivery ExpenseMerchandise InventorySalesNo entry requiredCorrect 56 of Item 3
May 8	- Select your answer -Accounts Receivable-Brady Co.Accounts Payable-Reed Corp.CashDelivery ExpenseNo entry requiredCorrect 58 of Item 3
	- Select your answer -CashSales Returns and AllowancesMerchandise InventoryRent ExpenseNo entry requiredCorrect 60 of Item 3
May 10	- Select your answer -Accounts Payable-Reed Corp.Merchandise InventorySales Returns and AllowancesSalaries ExpenseNo entry requiredCorrect 62 of Item 3
	- Select your answer -Accounts Payable-Reed Corp.Merchandise InventoryDelivery ExpenseSales Returns and AllowancesNo entry requiredCorrect 64 of Item 3
May 14	- Select your answer -Accounts Payable-Reed Corp.Accounts Payable-Brady Co.CashRent RevenueNo entry requiredCorrect 66 of Item 3
	- Select your answer -Accounts Payable-Reed Corp.Accounts Receivable-Reed Corp.CashDelivery ExpenseNo entry requiredCorrect 68 of Item 3
May 15	- Select your answer -Accounts Receivable-Reed Corp.Accounts Payable-Brady Co.CashMerchandise InventoryNo entry requiredCorrect 70 of Item 3
	- Select your answer -Accounts Receivable-Brady Co.Cost of Merchandise SoldSales DiscountsNo entry requiredCorrect 73 of Item 3
	- Select your answer -Accounts Receivable-Reed Corp.CashMerchandise InventoryNo entry requiredCorrect 76 of Item 3