Reference no: EM132969624
Question - 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 $6,000; the cost of the inventory was $3,800.5 Purchased $2,500 of inventory on credit.
May 9 Made credit sales of $4,000; the cost of the inventory sold was $1,900.
May 13 Paid sales salaries of $1,200 and office salaries of $400.
May 14 Paid for the May 5 purchases.
May 18 Purchased sales equipment costing $8,900; made a down payment of $1,400 and agreed to pay the balance in 60 days.
May 21 Purchased $900 of inventory for cash.
May 27 Sold land that had originally cost $1,900 for $2,900.
Required - Record the preceding transactions in a general journal.