12.13/50 Current Attempt in Progress First Choice Ltd. completed the following merchandising transactions in the month of May 2021. At the beginning of May, First Choice's ledger showed Cash $8,000; Accounts Receivable $2,400; Inventory $4,000; Common Shares $8,800; and Retained Earnings $5,600. First Choice has experienced a return rate of 2% of sales and uses a perpetual inventory system. May 1 3 4 Purchased merchandise on account from Depot Wholesale Supply Ltd. for $5,840, terms 1/10, n/30, FOB shipping point. Freight charges of $152 were paid by the appropriate party on the merchandise purchased on May 1. Sold merchandise on account to Ry Company for $4,000, terms n/30, FOB destination. The cost of the merchandise was $2,900. Freight charges of $96 were paid by the appropriate party on the May 4 sale. 7 8 Received a $140 credit from Depot Wholesale Supply when merchandise was returned. 9 Paid Depot Wholesale Supply in full. 11 Purchased supplies for $440 cash. 14 Received payment in full from Ry Company for merchandise sold on account on May 4. 15 Collected $1,040 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30. 18 Purchased merchandise from Harlow Distributors Inc. for $2,800, terms n/30, FOB destination. ENG (a) Confected $1,040 of the accounts receivable outstanding at the beginn originally sold on terms of n/30. the month. All acc TES were 18 Purchased merchandise from Harlow Distributors Inc. for $2,800, terms n/30, FOB destination. 21 Freight of $52 was paid by the appropriate party on the May 18 purchase of merchandise. 22 Sold merchandise to various customers for $7,600 cash. The cost of the merchandise was $4,300. 29 31 Paid a $104 cash refund to customers for returned merchandise. The cost of the returned merchandise was $60. It was restored to inventory. A physical inventory count was taken and determined that there was $5,280 of inventory on hand. Prepare any adjustment required. Your answer is partially correct. Record the May transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) ay 29 (Cost of goods sold recorded) Refund Liability ay 29 31 Cash (Return of merchandise) Inventory Estimated Inventory Returns (Return of merchandise, assuming goods are resaleable and returned to inventory) Cost of Goods Sold Inventory 104 60 1411 104 60 1411 ay 21 No Entry No Entry ay 22 Cash y 22 sales Refund Liability (Sale of goods) Cost of Goods Sold Estimated Inventory Returns Inventory (Cost of goods sold recorded) 0 7600 110 110 2800 7448 152 4300