Calculate the Cost of goods sold by: FIFO. LIFO. Average-cost. An auto dealer uses a perpetual inventory system. The dealer incurred the following transactions during the month of May: On May 1, a dealer purchased 10 vehicles on account of $20,000 each, with credit terms of 2/10, net 30. On May 2, the dealer returned one vehicle due to a product defect. On May 3, the dealer sold 5 vehicles for $25,000 each on account to a local town. The credit terms were 3/10, net 30. On May 9, the dealer paid for the vehicles purchased less the return on May 2. On May 31, the dealer collected one-half of the amount due from the May 3 sale. On May 31, the dealer paid the rent for the next month of $2,500. Required: Prepare the journal entries for the dealer during the month of May. Explanations are not required. A fire destroyed the inventory of Barber Company. The following information is available