The chart of accounts of Ervin Company includes the following selected accounts.

112 ...........Accounts Receivable

120 ...........Inventory

126 ...........Supplies

157 ...........Equipment

201 ...........Accounts Payable

401 ...........Sales Revenue

412 ...........Sales Returns and Allowances

505 ...........Cost of Goods Sold

610 ...........Advertising Expense

In May, the following selected transactions were completed. All purchases and sales were on account except as indicated. The cost of all merchandise sold was 65% of the sales price.

May 2 Purchased merchandise from Yan Company $7,100.

3 Received freight bill from Porter Freight on Yan purchase $360.

5 Made sales to Eder Company $2,200, Dixon Bros. $2,700, and Lamb Company $1,500.

8 Purchased merchandise from Quirk Company $8,000 and Zamora Company $8,700.

10 Received credit on merchandise returned to Zamora Company $500.

15 Purchased supplies from Rizio Supply $900.

16 Purchased merchandise from Yan Company $4,500, and Quirk Company $7,200.

17 Returned supplies to Rizio Supply, receiving credit $100. (Hint: Credit Supplies.)

18 Received freight bills on May 16 purchases from Porter Freight $500.

20 Returned merchandise to Yan Company receiving credit $300.

23 Made sales to Dixon Bros. $1,900 and to Lamb Company $3,600.

25 Received bill for advertising from Anshus Advertising $900.

26 Granted allowance to Lamb Company for merchandise damaged in shipment $240.

28 Purchased equipment from Rizio Supply $500.

Instructions

(a) Journalize the transactions above in a purchases journal, a sales journal, and a general journal. The purchases journal should have the following column headings: Date, Account Credited (Debited), Ref., Accounts Payable Cr., Inventory Dr., and Other Accounts Dr.

(b) Post to both the general and subsidiary ledger accounts. (Assume that all accounts have zero beginning balances.)

(c) Prove the agreement of the control and subsidiary accounts.