Molly's Greenhouse supplies bedding plants and other gardening products to a variety of stores across Alberta and also has a local greenhouse open to the public. Molly uses a perpetual inventory system. Transactions for the business are shown below:

May2 Purchased 500 decorative hanging baskets from Planters R Us, on account, at a cost of $20 each, terms 2/10, n/30. FOB shipping point.

3 The correct company paid cash for the $185 shipping charges.

4 Sold 200 hanging baskets to a hardware store in the city, on account, for a total invoice price of $8,000. Terms 1/10, n/30. Molly paid the shipping charge of $75.

5 Received a credit from Planters R Us for the return of 40 hanging baskets that had defective hangers.

7 20 of the baskets from the sale of May 4 were returned to the greenhouse for a full refund because the customer did not have enough room to store them.

12 Made a payment on account for the amount owing to Planters R Us for the purchase of May 2.

14 Received a cheque for the appropriate amount from the hardware store for the purchase of May 4

INSTRUCTIONS

Prepare journal entries to record the above transactions using the perpetual method.