7 At the beginning of the current soccer season, on May 1, 2021. Fullback Sports has 101 soccer balls in inventory at $10 each company uses a perpetual inventory system and the contract-based approach for revenue recognition. Based on past experi Fullback's management estimates returns at 20% of sales and has a stated return policy of 15 days from the date of sale. The following sales transactions occurred in May. May 5 Sold 10 soccer balls to Wolverine Soccer Club for $20 each, /30. Wolverine Soccer Club returned 2 of the balls after determining it had purchased more balls than it needed. Full gave Wolverine a credit on its account and returned the balls to inventory. Sold 30 balls at $20 each to cash customers. 6 of the balls purchased for cash on May 10 were returned for cash because they were damaged. The balls were scrapped Sold 21 balls to Spectre Community Club for $20 each.r/30 Collected cash from Wolverine Soccer Club for the amount owing. 10 12 17 31 Record the transactions for the month of May for Fullback Sports. (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 for the amounts Record journal entries in the order presented in the problem.) Date Account Tiles and Explanation Debit Credit May 5 Accounts Receivable 200 Sales No Entry 0 (To record sales on account.) Cost of Goods Sold May 5 100 Merchandise nentory No Entry Mary 7 Merchandise Inventory 40 Accounts Receivable (To record credit for goods returned.) Merchandise Inventory May 7 20 Cost of Goods Sold (To record cost of goods returned.) May 10 Cash 600 Sales No Entry (To record cash sale.) (To record cash sale.) Cost of Goods Sold LO 300 Merchandise Inventory No Entry o (To record cost of goods sold.) ay 12 Merchandise Inventory 120 Refund Liability (To record cash refund for goods returned.) ay 12 Merchandise Inventory 60 Cost of Goods Sold (To record cost of damaged goods returned.) 17 Accounts Receivable 420 Sales No Entry o (To record sales on account.) Cost of Goods Sold 210 Merchandise Inventory No Entry O (To record cost of goods sold.) 31 Cash 160 Accounts Receivable (Collection on account) Create accounts for Sales, Cost of Goods Sold, Merchandise Inventory, Estimated Inventory Returns, and Refund Liability. Post the opening balance for Merchandise Inventory and May's transactions, and calculate the May 31 balances. (Post entries in the order of journal entries presented in the previous part.)