Ayayai Hardware Store Inc. completed the following merchandising transactions in the month of May 2018. At the beginning of May, Ayayai's ledger showed Cash of $7,600 and Common Shares of $7,600. May 1 Purchased merchandise on account from Hilton Wholesale Supply for $7,600, terms 2/10, n/30. 2 Sold merchandise on account for $4,800, terms 3/10, n/30. The cost of the merchandise sold was $3,100. 5 Received credit from Hilton Wholesale Supply for merchandise returned $200. 9 Received collections in full, less discounts, from customers billed on May 2. 10 Paid Hilton Wholesale Supply in full, less discount. 11 Purchased supplies for cash $810. 12 Purchased merchandise for cash $2,590. 15 Received $230 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise from Northern Distributors for $2,300, terms 2/10, n/30. 19 Paid freight on May 17 purchase $230. 24 Sold merchandise for cash $5,850. The cost of the merchandise sold was $4,140. 25 Purchased merchandise from Toolware Inc. for $740, terms 3/10, n/30. 27 Paid Northern Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $130. The returned merchandise was returned to inventory and had cost $100. 31 Sold merchandise on account for $1,180, terms n/30. The cost of the merchandise sold was $880. Date Account Titles and Explanation Debit Credit May 1 Inventory 7600 Accounts Payable 7600 Accounts Receivable 4800 Sales 4800 (Sale of merchandise on account) Cost of Goods Sold 3100 Inventory 3100 (Cost of goods sold recorded) 5 Accounts Payable 200 Inventory 200 9 Cash Sales Discounts Accounts Receivable 4800 10 Accounts Payable Purchase Discounts Cash 11 Supplies 810 Cash 810 Inventory 2590 Cash 2590 15 Cash Inventory 230 17 Inventory 2300 Accounts Payable 2300 19 Inventory Cash 230 24 Cash Sales (Sale of merchandise) 24 Cost of Goods Sold Inventory (Cost of goods sold recorded) 25 Inventory Accounts Payable 740 27 Accounts Payable Sales Discounts Cash 29 Inventory Cost of Goods Sold 130 (Return of merchandise) 29 Inventory 100 100 Cost of Goods Sold (Return of merchandise, assuming goods are resaleable and returned to inventory) 31 Accounts Receivable 1180 Sales 1180 (Sale of merchandise) 31 Cost of Goods Sold 880 Inventory 880 (Cost of goods sold recorded)