Problem 5-1A (Part Level Submission)

Waters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Water?s ledger showed Cash of $10,756 and Common Stock of $10,756.

May 1	Purchased merchandise on account from Hauke Wholesale Supply for $8,100, terms 1/10, n/30.
2	Sold merchandise on account for $5,500, terms 2/10, n/30. The cost of the merchandise sold was $4,125.
5	Received credit from Hauke Wholesale Supply for merchandise returned $500.
9	Received collections in full, less discounts, from customers billed on May 2.
10	Paid Hauke Wholesale Supply in full, less discount.
11	Purchased supplies for cash $1,210.
12	Purchased merchandise for cash $4,168.
15	Received $309 refund for return of poor-quality merchandise from supplier on cash purchase.
17	Purchased merchandise from Friedrich Distributors for $3,500, terms 2/10, n/30.
19	Paid freight on May 17 purchase $336.
24	Sold merchandise for cash $7,395. The cost of the merchandise sold was $5,512.
25	Purchased merchandise from Fasteners Inc. for $1,076, terms 3/10, n/30.
27	Paid Friedrich Distributors in full, less discount.
29	Made refunds to cash customers for returned merchandise $130. The returned merchandise had cost $98.
31	Sold merchandise on account for $1,721, terms n/30. The cost of the merchandise sold was $1,116.

Journalize the transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date	Account Titles & Explanation	Debit	Credit
(To record credit sales)
May 9
(To record sales)
(To record payment for returned merchandise)
(To record cost of goods returned)
(To record credit sale)
(To record cost of goods sold on account)

Problem 5-1A (Part Level Submission) Waters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Water's ledger showed Cash of $10,756 and Common Stock of $10,756. May 1 Purchased merchandise on account from Hauke Wholesale Supply for $8,100, terms 1/10, n/30. 2 Sold merchandise on account for $5,500, terms 2/10, n/30. The cost of the merchandise sold was $4,125. 5 Received credit from Hauke Wholesale Supply for merchandise returned $500. 9 Received collections in full, less discounts, from customers billed on May 2. 10 Paid Hauke Wholesale Supply in full, less discount. 11 Purchased supplies for cash $1,210. 12 Purchased merchandise for cash $4,168. 15 Received $309 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise from Friedrich Distributors for $3,500, terms 2/10, n/30. 19 Paid freight on May 17 purchase $336. 24 Sold merchandise for cash $7,395. The cost of the merchandise sold was $5,512. 25 Purchased merchandise from Fasteners Inc. for $1,076, terms 3/10, n/30. 27 Paid Friedrich Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $130. The returned merchandise had cost $98. 31 Sold merchandise on account for $1,721, terms n/30. The cost of the merchandise sold was $1,116. Journalize the transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Dat e Account Titles & Explanation (To record credit sales) May 9 Debit Credit (To record sales) (To record payment for returned merchandise) (To record cost of goods returned) (To record credit sale) (To record cost of goods sold on account)