Then, create a general ledger for perpetual system for cash account. DATE DESCRIPTION PR DEBIT CREDIT MAY 1 CASH 101 50,000 ASHLY , CAPITAL 301 50,000 To record the initial investment of the owner. 2 MERCHANDISE INVENTORY 103 10,000 ACCOUNTS PAYABLE-WENDY SUP. CO. 201 10,000 To record the purchase of merchandise on account. 3 CASH 101 500 ACCOUNTS RECEIVABLE 102 4,000 SALES 401 4,500 COST OF GOOD SOLD 501 700 MERCHANDISE INVENTORY 103 700 To record the sale of merchandise. 4 FREIGHT OUT 510 500 CASH 101 500 To record the payment for freight on sales. 5 ACCOUNTS PAYABLE - WENDY SUP. CO. 201 800 MERCHANDISE INVENTORY 103 800 To record the return of merchandise to the supplier. 6 ACCOUNTS PAYABLE - WENDY SUP. CO. 201 5,000 CASH 201 5,000 To record the partial payment to Wendy. 7 CASH 101 3,000 ACCOUNTS RECEIVABLE 102 3,000 To record the partial collection from customers. 8 ACCOUNTS PAYABLE - WENDY SUP. CO. 201 4,200 CASH 101 4,116 MERCHANDISE INVENTORY 103 84 To record the full payment to Wendy. 9 CASH 101 980 SALES DISCOUNT 402 20 ACCOUNTS RECEIVABLE 101 1,000 To record the full collection from the customer. 10 MERCHANDISE INVENTORY 103 6,800 CASH 102 6,800 To record the cash purchase of merchandise. 11 CASH 101 500 MERCHANDISE INVENTORY 103 500 To record the refund from the supplier