1. prepare journal entries to record the above transaction

2. post the amounts to the appropriate income statement accounts

3. prepare the cost of goods sold section of the income statement. Assume beginning inventory is $1200 and ending inventory is $8911

Molly's Greenhouse supplies bedding plants and other gardening products to a variety of stores across Alberta and also has a local greenhouse open to the public. Molly's uses a periodic inventory system and the earnings approach for revenue recognition Transactions for the business are shown below: May 2 3 4 Purchased 500 decorative hanging baskets from Planters R Us on account, at a cost of $30 each, terms 2/10, 1/30. FOB shipping point. The correct company paid cash for the $175 shipping charges. Sold 200 hanging baskets to a hardware store in the city, on account for a total invoice price of $10,000. Terms are 1/10, 1/30 and the cost was $30 per basket. Molly's paid the shipping charge of $75 on the same day. Received a credit from Planters R Us for the return of 60 hanging baskets that had defective hangers. 20 of the baskets from the sale of May 4 were returned to the greenhouse for a full refund because the customer did not have enough room to store them. Made a payment on account for the balance owing to Planters R Us for the purchase of May 2. Received a cheque for the appropriate amount from the hardware store for the sale of May 4. 5 7 12 13 momord the ahnye transactions. (Credit account titles are automatically indented when the amount is entered. amount