Prepare journal entries to record the following merchandising transactions of Yang Company, which applies the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on May 2 in Accounts Payable-Bots.)
May 2 Purchased merchandise from Bots Co. for $9,000 under credit terms of 1y15, ny30, FOB shipping point, invoice dated May 2.
May 4 Sold merchandise to Chase Co. for $1,200 under credit terms of 2y10, ny60, FOB shipping mpoint, invoice dated May 4. The merchandise had cost $750.
May 5 Paid $150 cash for freight charges on the purchase of May 2.
May 9 Sold merchandise that had cost $1,800 for $2,400 cash.
May10 Purchased merchandise from Snyder Co. for $3,450 under credit terms of 2y15, ny60, FOB destination, invoice dated May 10.
May12 Received a $300 credit memorandum from Snyder Co. for the return of part of the merchandise
purchased on May 10.
May14 Received the balance due from Chase Co. for the invoice dated May 4, net of the discount.
May17 Paid the balance due to Bots Co. within the discount period.
May20 Sold merchandise that cost $1,450 to Tex Co. for $2,800 under credit terms of May2y15, ny60, FOB shipping point, invoice dated May 20.
May22 Issued a $400 credit memorandum to Tex Co. for an allowance on goods sold from May 20.
25 Paid Snyder Co. the balance due after deducting the discount.
30 Received the balance due from Tex Co. for the invoice dated May 20, net of discount and allowance.
31 Sold merchandise that cost $4,800 to Chase Co. for $7,500 under credit terms of 2y10, ny60, FOB shipping point, invoice dated May 31.