Time: 12:21 PM / Remaining: 8 min. Question 1 Blossom Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Blossom showed Cash of $4,500 and Owner's Capital of $4,500. May 1 Purchased merchandise on account from Braun's Wholesale Supply $3,800, terms 2/10, 1/30. 2 Sold merchandise on account $1,500, terms 1/10, 1/30. The cost of the merchandise sold was $1,000 .5 Received credit from Braun's Wholesale Supply for merchandise returned $200 9 Received collections in full, less discounts, from customers billed on sales of $1,500 on May 10 Paid Braun's Wholesale Supply in full, less discount. 11 Purchased supplies for cash $300. 12 Purchased merchandise for cash $1,200. 15 Received refund for poor quality merchandise from supplier on cash purchase $100. 17 Purchased merchandise from Valley Distributors $1,100, FOB shipping point terms 2/10, 1/30. 19 Paid freight on May 17 purchase $100. 24 Sold merchandise for cash $2,000. The merchandise sold had a cost of $1,800 25 Purchased merchandise on account from Lumley, Inc. $550, FOB destination, terms 2/10, 1/30. 27 Paid Valley Distributors in full, less discount 29 Made refunds to cash customers for defective merchandise $60. The returned merchandise had a fair value of $20 31 Sold merchandise on account $1,000, terms 1/30. The cost of the merchandise sold was $500. Blossom Hardware's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Acounts 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. 12:21 PR heb H OU LAULULATUM PRINTER VERSION BACK (a) Journalize the transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not inden manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Credit (To record credit sale) (To record cost of merchandise sold)
