E5-10 An inexperienced accountant for Blaufuss Company made the following errors in recording merchandising transactions.

1. A $175 refund to a customer for faulty merchandise was debited to Sales $175 and credited to Cash $175.

2. A $180 credit purchase of supplies was debited to Merchandise Inventory $180 and credited to Cash $180.

3. A $110 sales discount was debited to Sales.

4. A cash payment of $20 for freight on merchandise purchases was debited to Freight-out

$200 and credited to Cash $200.