A. Journalize the transactions using a perpetual inventory system.

B. Post the transactions to T-accounts. Be sure to enter the beginning cash and commo stock balances.

Water Hardware store completed the following merchandise transactions in the month of May. At the beginning of May, Water's ledger showed Cash of $10,152 and common stock of $10,152. Purchase merchandise on account form Hauke Wholesale Supply for $8,300, terms 1/10, n/30. Sold merchandise on account for $6,000, terms 2/10, n/30. The cost of the merchandise sold was $4,500. Received credit from Hauke Wholesale Supply for merchandise returned $500. Received collections in full, less discount, from customers billed on May 2. Paid Hauke Wholesale supply in full, less discount. Purchase supplies for cash $1,142. Purchase merchandise for cash $3,934. Received $292 refund for return of poor-quality merchandise from supplier on cash purchase. Purchase merchandise form Friedrich Distributors for $4,100, terms 2/10, n/30. Paid freight on May 17 purchase $317. Sold merchandise from Fasteners Inc. for $1,015, terms 3/10, n/30. Paid Friedrich Distributors in full, less discount. Made refunds to cash customers for returned merchandise $137. The returned merchandise had cost $103. Sold merchandise on account for $1,624, terms n/30. The cost of the merchandise sold was $1,053