Wildhorse Co. completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Wildhorse showed Cash of $5,000 and Common Stock of $5,000. May 1 2 5 9 10 11 12 Purchased merchandise on account from Gray's Wholesale Supply $4,500, terms 2/10,n/30. Sold merchandise on account $2,400, terms 1/10,n/30. The cost of the merchandise sold was $1,000. Received credit from Gray's Wholesale Supply for merchandise returned $400, Received collections in full, less discounts, from customers billed on sales of $2,400 on May 2. Paid Gray's Wholesale Supply in full, less discount Purchased supplies for cash $400. Purchased merchandise for cash $1,300. Received refund for poor quality merchandise from supplier on cash purchase $100. Purchased merchandise from Amland Distributors $1.200, FOB shipping point terms 2/10,n/30. Paid freight on May 17 purchase $120. Sold merchandise for cash $3,300. The merchandise sold had a cost of $2,000. Purchased merchandise on account from Horvath. Inc. $750, FOB destination terms 2/10./30. Paid Amland Distributors in full, less discount Made refunds to cash customers for defective merchandise $60. The returned merchandise had a fair value of $40. Sold merchandise on account $1,500, terms n/30. The cost of the merchandise sold was $500 15 17 19 24 25 27 29 a 31 23 Purcase Teretail 27 29 Paid Amland Distributors in full, less discount. Made refunds to cash customers for defective merchandise $60. The returned merchandise had a fair value of $40. Sold merchandise on account $1,500, terms n/30. The cost of the merchandise sold was $500. 31 Wildhorse Cos chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 311 Common Stock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 4 Sales Discounts, and No.505 Cost of Goods Sold. Credit Debit $4,500 $4.500 $2.400 $2.400 $1,000 $1,000 5400 $400 $2,376 $24 $2,400 $4,100 $82 $4.018 S400 $400 $1,300 $1.300 $100 $100 $1,200 Date Account Titles and Explanation May 01 Inventory Accounts payable To record merchandise purchased on account) May-02 Accounts receivable Sales revenue To record credit sale) May-02 Cost of goods sold Inventory To record cost of merchandise sold) May-05 Accounts payable Inventory To record credit for merchandise returned) May-09 Cash Sales discounts (1% $2,400) Accounts receivable (To record collection on account) May 10 Accounts payabile ($4,500 $400) Inventory ( 2x 54,100 Cash To record payment on account) May-11 Supplies Cash To record supplies purchased for cash) May 12 Inventory Cash To record merchandise purchased for cash) May-15 Cash Inventory to record refund received on merchandise returned) May 17 Inventory Accounts payable To record merchandise purchased on account) Continue, May 19 Inventory Cash To record freight paid for merchandise purchased May 24 Cash Sales revenge (To record cash sales May 24 Cost of goods sold Inventory To record cost of merchandise sold) May-25 Inventory Accounts payable (To record merchandise purchased on account) May-27 Accounts payable Inventory (2% x $1,200) Cash (To record payment on account) May 29 Sales returns and allowances Cash (to record refund given for merchandise returned) May-29 Inventory Cost of goods sold To record cost of merchandise returned) May-31 Accounts receivable Sales revenue (to record credit sale! May-31 Cost of goods sold Inventory (To record cost of merchandise soid) $1.200 $120 $120 53,300 53,300 $2.000 $2,000 5750 5750 $1,200 $24 $1,176 $60 $60 S40 $40 $1.500 $1,500 $500 5500 . (b) Enter the beginning cash and common stock balances and post the transactions. (Post entries in the order of journal entries presented in the previous question) No. 101 Cash Date Explanation Balance Ref. Debit Credit Balance J1 31 31 J1 No. 126 Supplies Date Credit Balance Debit Explanation Ref. 31 No. 201 Accounts Payable Credit Balance Debit Date Explanation Ref. No. 201 Accounts Payable Date Explanation Credit Balance Debit Ref. 31 > 31 >> 31 v C J1 01 31 No. 311 Common Stock Date Debit Credit Balance Explanation Ref. Balance No. 401 Sales Revenue Date Explanation Balance Ref. Debit Credit 31 No. 401 Sales Revenue Date Balance Explanation Ref. Debit Credit 31 J1 J1 No. 412 Sales Returns and Allowances Date Explanation Ref. Debit Credit Balance J1 No. 414 Sales Discounts Date Explanation Ref. Debit Credit Balance J1 No. 505 Cost of Goods Sold Date Explanation Ref. Debit Credit Balance 31 J1 No. 505 Cost of Goods Sold Date Explanation Balance Ref. Credit Debit 11 31 31 31