Reference no: EM132879667

Problem - Journal Entries - Mead Company uses a perpetual inventory system and engaged in the following transactions during the month of May:

Date Transaction

May 1 Made cash sales of $6,300; the cost of the inventory was $3,700.

May 5 Purchased $2,000 of inventory on credit.

May 9 Made credit sales of $3,300; the cost of the inventory sold was $1,900.

May 13 Paid sales salaries of $900 and office salaries of $600.

May 14 Paid for the May 5 purchases.

May 18 Purchased sales equipment costing $8,000; made a down payment of $2,000 and agreed to pay the balance in 60 days.

May 21 Purchased $600 of inventory for cash.

May 27 Sold land that had originally cost $1,900 for $2,600.

Required - Record the preceding transactions in a general journal.