At the beginning of the current soccer season, on May 1, 2021. Fullback Sports has 92 soccer balls in inventory at $10 each. The company uses a perpetual inventory system and the contract-based approach for revenue recognition, Based on past experience. 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 7 10 Sold 15 soccer balls to Wolverine Soccer Club for $20 each, /30. Wolverine Soccer Club returned 3 of the balls after determining it had purchased more balls than it needed. Fullback gave Wolverine a credit on its account and returned the balls to inventory Sold 40 balls at $20 each to cash customers. 8 of the balls purchased for cash on May 10 were returned for cash because they were damaged. The balls were scrapped. Sold 19 balls to Spectre Community Club for $20 each, n/30. Collected cash from Wolverine Soccer Club for the amount owing. 12 17 31 Date Account Titles and Explanation Debit May 5 Accounts Receivable Credit Refund Liability Sales (To record sales on account.) May 5 Cost of Goods Sold Merchandise Inventory (To record cost of goods sold.) Refund Liability May 7 Accounts Receivable (To record credit for goods returned.) May 7 Merchandise Inventory Cost of Goods Sold ADO (To record cash sale.) May 10 (To record cost of goods sold.) May 12 (To record cash refund for goods returned.) V May 12 (To record cost of damaged goods returned.) May 17 Merchandise Inventory > > Refund Liability >