Assume it is Monday, May 1, the first business day of the month, (Part 1)?

, and you have just been hired as the accountant for Colo Company,which operates with monthly accounting periods. All of the company鈥檚 accounting work is completed through the end of April and its ledgers show April 30 balances.During your first month on the job, the company experiences the following transactions and events (terms for all its credit sales are 2/10, n/30 unless stated differently):
May 1 Issued Check No. 3410 to S&P Management Co. in payment of the May rent, $3,710. (Use two lines to record the transaction. Charge 80% of the rent to Rent Expense鈥擲elling Space and the balance to Rent Expense鈥擮ffice Space.)
2 Sold merchandise on credit to Hensel Company, Invoice No. 8785, for $6,100 (cost is $4,100).
2 Issued a $175 credit memorandum to Knox, Inc., for defective (worthless) merchandise sold on April 28 and returned for credit. The total selling price (gross) was $4,725.
3 Received a $798 credit memorandum from PeytonProducts for the return of merch. purchaced April 29

4 Purchased the following on credit from Gear Supply Co.: merchandise,
$37,072; store supplies, $574; and office supplies, $83. Invoice dated May 4, terms n/10 EOM.
5 Received payment from Knox, Inc., for the balance from the April 28 sale less the May 2 return and the discount.
8 Issued Check No. 3411 to Peyton Products to pay for the $7,098 of merchandise purchased on April 29 less the May 3 return and a 2% discount.
9 Sold store supplies to the merchant next door at their cost of $350 cash.
10 Purchased $4,074 of office equip on credit from Gear Supply Co., invoice dated May10, terms n/10 EOM.
11 Received payment from Hensel Company for May 2 sale less the
discount.
11 Purchased $8,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 2/10, n/30.
12 Received an $854 credit memo from Gear Supply Co. for the return of defective office equipment received on May 10.
15 Issued Check No. 3412, payable to Payroll, in payment of sales salaries, $5,320, and

I've emailed the Excel file to you.

First, I would like to know if it's using a perpetual or periodic inventory system to make the correct journal entries. I assume it's perpetual since you are listing cost to include COGS.