Comprehensive Problem 2 Part 1 and Part 2: Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 2016 (unless otherwise indicated), are as follows. Assume all accounts have normal balances. 110 Cash 312 Dividends $83,600 233,900 624,400 $135,000 5,069,000 112 Accounts Receivable 410 Sales 510 Cost of Goods Sold 2,823,000 28,000 664,800 115 Inventory 116 Estimated Returns Inventory 117 Prepaid Insurance 118 Store Supplies 281,000 16,800 11,400 123 Store Equipment 569,500 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense Store Supplies 523 Expense Miscellaneous Selling 529 Expense Office Salaries 530 Expense 531 Rent Expense 124 Accumulated Depreciation- Store Equipment 56,700 12,600 210 Accounts Payable 96,600 382,100 83,700 211 Salaries Payable 212 Customers Refunds Payable 50,000 532 Insurance Expense 310 Common Stock 100,000 Miscellaneous 539 Administrative Expense 7,800 - 211 Salaries Payable 531 Rent Expense 83,700 212 Customers Refunds Payable 50,000 532 Insurance Expense Miscellaneous 310 Common Stock 100,000 539 Administrative 7,800 Expense 311 Retained Earnings 585,300 539 Part 1: Journalize the transactions below for May, the last month of the fiscal year. If an amount box does not require an entry, leave it blank. May 1: Paid rent for May, $5,000. Date Description Post. Ref. Debit Credit May 1 May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Date Description Post. Ref. Debit Credit May 3 May 4: Paid freight on purchase of May 3, $600. Date Description Post. Ref. Debit Credit May 4 May 6: Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the goods sold was $41,000. Date Description Post. Ref. Debit Credit May 6-Sales May 6-Cost May 7: Received $22,300 cash from Halstad Co. on account. Date Description Post. Ref. Debit Credit May 7 May 10: Sold merchandise for cash, $54,000. The cost of the goods sold was $32,000. Debit Date Credit Post. Ref. Description May 10-Sales May 10-Cost May 13: Paid for merchandise purchased on May 3. Date Description Debit Credit Post. Ref. May 13 May 15: Paid advertising expense for last half of May, $11,000. Date Description Debit Credit Post. Ref. May 15 May 16: Received cash from sale of May 6. Date Description Post. Ref. Debit Credit May 16 May 19: Purchased merchandise for cash, $18,700. Date Description Post. Ref. Debit Credit May 19 May 19: Paid $33,450 to Buttons Co. on account. Date Description Post. Ref. Debit Credit May 19 May 20: Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000. Date Description Post. Ref. Debit Credit May 20-Refund May 20-Cost May 20: Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the goods sold was $70,000. Date Description Posthef. Debit Credit May 20-Sales May 20-Cost May 24: Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Date Description Post. Ref. Debit Credit May 24 May 26: Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. Date Description Post. Ref. Debit Credit May 26-Refund May 26-Cost May 28: Paid sales salaries of $56,000 and office salaries of $29,000. Date Description Post. Ref. Debit Credit May 28 May 29: Purchased store supplies for cash, $2,400. Date Description Post. Ref. Debit Credit May 29 May 30: Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the goods sold was $47,000. Date Description Post. Ref. Debit Credit May 30-Sales I May 30-Cost May 30: Received cash from sale of May 20 plus freight paid on May 21. Date Description Post. Ref. Debit Credit May 30 I May 31: Paid for purchase of May 21, less return of May 24. Date Description Post. Ref. Debit Credit May 31 Part 2: Using the attached spreadsheet, post the journal entries from Part 1 to the general ledger. Extend the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers