A company reported the following transactions. May $2$ Purchased $$39,800$ of merchandise from Smith, terms $1/10,$ n$/40.$ May $3$ Purchased $$19,900$ of machinery on credit from Johnson, terms n$/45.$ May $5$ Borrowed $$81,500$ cash from Chase Bank by signing a long$-$term note payable. May $9$ Sold merchandise on credit to Williams, Invoice Number $105,$ for $$3,980($cost is $$1,990).$ May $10$ Returned $$635$ of machinery purchased on May $3$ to Johnson. The company reduces accounts payable by that amount. May $11$ Sent Smith Check Number $252$ in payment of the May $2$ invoice less the discount of $$398.$ May $12$ Purchased $$51,000$ of merchandise from Garcia, terms $1/15,$ n$/45.$ May $14$ Returned $$3,580$ of unsatisfactory merchandise purchased on May $12$ to Garcia. The company reduces accounts payable by that amount. May $17$ Received payment from Williams for the sale of May $9$ less the discount of $$74$ May $26$ Issued check number $253$ to Garcia in payment of the May $12$ purchases less the May $14$ return and the $$326$ discount. May $27$ Sold merchandise on credit to Jones $,$ invoice number $106$ for $$4,510($cost $$1,918).$ May $31$ Sold merchandise for $$59,500$ cash $($cost is $$46,460)$ Complete a sales journal, purchase journal, cash receipts journal, cash payments journal, and journal entry worksheet for $$Returned $$635$ of machinery purchased on May $3$ to Johnson. The company reduces accounts payable by that amount.$$

Answer rating: 100% (QA)

Transaction Analysis for May Based on the provided transactionsheres a breakdown of the journals and ... View the full answer