The following transactions of Bitexco Company occurred during the May 2020. Bitexco Company uses the perpetual inventory system. Prepare journal entries to record these above transactions in May, 2020 and prepare adjusting journal entries as of the May 31, 2020. 1 May 1 May 2 May 3 May 4 May 6 a The company received $15,000 cash plus a $50,000 note from PG Co in exchange for merchandise that sold for $65,000 and had cost $35,000. The note is dated May 1, bears 12% interest, and matures in 90 days. Paid $8,500 cash and signed a note payable for $12,000 to purchase $20,500 store supplies. Paid $350,000 cash plus $28,000 in sales tax and $2,000 in transportation for a store equipment. The store equipment is estimated to have a ten-years life and 18,500 salvage value. Purchased 300 units of merchandise from Green Company for $200 per unit under credit terms of 2/15, n/60; FOB shipping point, invoice dated May.4. The invoice showed that at Bitexco's request, Green Company paid the $1,500 shipping charges and add that amount to the bill. (Recall: Discount are not applied to freight and shipping charges) After negotiation with Green Company concerning problems with the merchandise purchased on May 4, Bitexco Company received a credit memorandum from Green Company granting a price reduction of $15,000. Bitexco Co. agreed to work on a new housing development. The company received $120,000 cash in advance of future installation of alarm systems in 24 new homes. The company paid $7,500 cash for the premium on a five - months insurance policy and $6,000 cash to Halam Company for another four - months' rent in advance. Coverage begins on May 11. Sold an store equipment which is used 8 years for $50,000 cash. This equipment had total cost of $200,000, ten - years life and $25,000 salvage value. The company received a $45,000, 60 - day, 10% note in exchange for merchandise sold to Pooh Company. The merchandise had cost $22,000. The company paid Green Co. for the balance due for the May 4 purchase, net of both the discount and the price reduction granted. Sold 300 units of merchandise for $250 per unit to Black Company under credit term 2/10, n/30, FOB destination, invoice May.20. The merchandise had cost $190 per unit and Bitexco Co. paid $750 cash for freight charges to delivery May 8 May 10 May 12 May 15 May 17 May 20 merchandise to Black Co. May 24 Black Company returned 100 units of merchandise from the May 20 sale that had cost $190 per unit and been sold for $250 per unit. The merchandise was restored to Inventory of Bitexco Co. May 25 The company received the balance due from Black Company for merchandise sold on May 20, net of both the discount and the credit for returned merchandise May 24. May 27 May 28 May 31 May 31 May 31 Sold 200 units of merchandise to a customer and immediately collected $100 per unit cash and paid $1,100 cash for freight charges to delivery merchandise to client. The merchandise had cost $50 per unit. Paid $2,200 cash to VOV Media Company for advertising costs and $2,500 cash for utilities bill of May, 2020. As of the May 31, Inventory count of store supplies shows $3,500 still available. As of the May 31, Two thirds of one month's insurance coverage has expired and one month's rent has expired. As of the May 31, Queen has not paid and not recorded this month's salary to the employees at the rate of $10,000 per month. As of the May 31, Depreciation on the store equipment, that was purchased on May 3, for this month has not recorded. As of the May 31, The company record accrued interest earned for note receivable of PG Company May 1. As of the May 31, The company record accrued interest earned for note receivable of Pooh Company May 15. As of the May 31, the company completed to install alarm system for 20 homes of contract May 8. May 31 May 31 May 31 May 31