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The ledger accounts given below, with an identification number for each, are used by Precise Supplies. The company uses a perpetual inventory system. Instructions: Prepare appropriate entries for the month of May by placing the appropriate identification number(s) in the debit and credit columns provided and the dollar amounts pertaining to each account in the adjoining columns. Item O is given as an example. 1. Cash 2. Accounts Receivable 3. Notes Receivable 4. Inventory 5. Supplies 6. Land 7. Accounts Payable 8. Sales Returns and Allowances 9. Sales Discounts 10. Sales Revenue 11. Cost of Goods Sold 12. Freight-Out Entry Information Account(s) Debited Account(s) Debit Credited) Amount 1 $ 200 Credit Amount $ 200 0 Purchased merchandise for cash of $200 4 May 1: Sold merchandise with a cost of $250 for cash of $450, terms net 30 May 2: Purchased merchandise from Supplier, Inc. on account for $2,000, terms 2/10, n/30 May 7: Returned $500 of merchandise that had been purchased from Supplier, Inc. on May 2 May 12: Sold merchandise costing $550 to Bike World on account for $900, terms 2/10, n/30. Bike World will pay $40 freight costs per the shipping terms May 13: Accepted a return of merchandise from Bike World with a cost of $60. Granted a credit on account of $100 May 19: Purchased merchandise from AB Supply on account for $1,600; terms 1/10, n/30 May 20: Paid freight of $90 on the shipment from Supplier, Inc. per the shipping terms of purchase on May 3 6 7 May 21: Received payment in full from Bike World 9 May 23: Paid Supplier, Inc. in full 10 May 28: Paid AB Supply in full

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