Cheng Enterprises completed the following transactions during May. Cheng uses the periodic inventory system in accounting for inventory.

May 4 Sold merchandise to a customer for $2,500. Customer paid with a credit card. The credit card company charged a 2% service fee.

6 Sold merchandise worth $6,200 to Wang on account, with terms of 2/10, n/30, FOB shipping point.

8 Wang returned $300 of merchandise.

12 Sold merchandise worth $4,800 to Jung on account, with terms of 2/10, n/30, FOB shipping point.

15 Received payment from Wang.

22 Received payment from Jung.

Requirements

1. Calculate the net sales for May.

2. Prepare the journal entries to record the transactions that occurred in May.