Date Account Titles and Explanation Debit Credit May 1 Inventory 6640 Accounts Payable 664 May 3 Inventory 176 Cash 17 May 4 Accounts Receivable 4800 Sales 480 Refund Liability (Sale of goods on account) Cost of Goods Sold May 4 3700 Inventory 370 Cost of Goods Sold (Cost of goods sold recorded) No Entry May 7 0 No Entry May 8 Accounts Payable 140 Inventory 14 May 9 Accounts Payable 6500 May 22 Cash 9200 Sales 920 (Sale of goods) May 22 Cost of Goods Sold 5100 Inventory 510 (Cost of goods sold recorded) Sales Returns and Allowances May 29 120 Cash 12 (Return of merchandise) May 29 Inventory 68 6 Cost of Goods Sold (Return of merchandise, assuming goods are resaleable and returned to inventory) Cost of Goods Sold May 31 1244 Inventory 124 Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2021. At the beginning of May, Piper's ledger showed Cash $9,600; Accounts Receivable $3,200; Inventory $4,800; Common Shares $10,400; and Retained Earnings $7,200. Piper Specialty has experienced a return rate of 2% of sales and uses a perpetual inventory system. 1 May 3 4 7 8 9 11 14 Purchased merchandise on account from Depot Wholesale Supply Ltd. for $6,640, terms 1/10, n/30, FOB shipping point. Freight charges of $176 were paid by the appropriate party on the merchandise purchased on May 1. Sold merchandise on account to Yip Company for $4,800, terms n/30, FOB destination. The cost of the merchandise was $3,700. Freight charges of $112 were paid by the appropriate party on the May 4 sale. Received a $140 credit from Depot Wholesale Supply when merchandise was returned. Paid Depot Wholesale Supply in full. Purchased supplies for $520 cash. Received payment in full from Yip Company for merchandise sold on account on May 4. Collected $1,200 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30. Purchased merchandise from Harlow Distributors Inc. for $3,600, terms n/30, FOB destination. Freight of $60 was paid by the appropriate party on the May 18 purchase of merchandise. Sold merchandise to various customers for $9,200 cash. The cost of the merchandise was $5,100. Paid a $120 cash refund to customers for returned merchandise. The cost of the returned merchandise was $68. It was restored to inventory. A physical inventory count was taken and determined that there was $6,080 of inventory on hand. Prepare any adjustment required. 15 18 21 22 29 31 Date Account Titles and Explanation Debit Credit May 1 Inventory 6640 Accounts Payable 664 May 3 Inventory 176 Cash 17 May 4 Accounts Receivable 4800 Sales 480 Refund Liability (Sale of goods on account) Cost of Goods Sold May 4 3700 Inventory 370 Cost of Goods Sold (Cost of goods sold recorded) No Entry May 7 0 No Entry May 8 Accounts Payable 140 Inventory 14 May 9 Accounts Payable 6500 May 22 Cash 9200 Sales 920 (Sale of goods) May 22 Cost of Goods Sold 5100 Inventory 510 (Cost of goods sold recorded) Sales Returns and Allowances May 29 120 Cash 12 (Return of merchandise) May 29 Inventory 68 6 Cost of Goods Sold (Return of merchandise, assuming goods are resaleable and returned to inventory) Cost of Goods Sold May 31 1244 Inventory 124 Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2021. At the beginning of May, Piper's ledger showed Cash $9,600; Accounts Receivable $3,200; Inventory $4,800; Common Shares $10,400; and Retained Earnings $7,200. Piper Specialty has experienced a return rate of 2% of sales and uses a perpetual inventory system. 1 May 3 4 7 8 9 11 14 Purchased merchandise on account from Depot Wholesale Supply Ltd. for $6,640, terms 1/10, n/30, FOB shipping point. Freight charges of $176 were paid by the appropriate party on the merchandise purchased on May 1. Sold merchandise on account to Yip Company for $4,800, terms n/30, FOB destination. The cost of the merchandise was $3,700. Freight charges of $112 were paid by the appropriate party on the May 4 sale. Received a $140 credit from Depot Wholesale Supply when merchandise was returned. Paid Depot Wholesale Supply in full. Purchased supplies for $520 cash. Received payment in full from Yip Company for merchandise sold on account on May 4. Collected $1,200 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30. Purchased merchandise from Harlow Distributors Inc. for $3,600, terms n/30, FOB destination. Freight of $60 was paid by the appropriate party on the May 18 purchase of merchandise. Sold merchandise to various customers for $9,200 cash. The cost of the merchandise was $5,100. Paid a $120 cash refund to customers for returned merchandise. The cost of the returned merchandise was $68. It was restored to inventory. A physical inventory count was taken and determined that there was $6,080 of inventory on hand. Prepare any adjustment required. 15 18 21 22 29 31