DO IT! On May 1, Wilton sold merchandise on account to Bates for 50,000 terms 3/15, net 45. On May 4, Bates returns merchandise with a sales price of 2,000. On May 16, Wilton receives payment from Bates for the balance due. Prepare journal entries to record the May transactions on Wilton's books. (Ignore cost of goods sold entries.) May 1 Accounts Receivable Bates 50,000 Sales Revenue 50,000 4 Sales Returns and Allowances Accounts Receivable Bates 2,000 2,000 16 Cash (48,000 - 1,440) Sales Discounts (48,000 x .03) Accounts Receivable-Bates 46,560 1,440 48,000 8-12 LO 2 CA 67. The income statement and statement of financial position columns of Reed Company's worksheet reflect the following totals: Income Statement Statement of Financial Position Dr. Cr. Dr. Totals $58,000 $45,000 $34,000 $47.000 The net income (or loss) for the period is a $45,000 income b. $13,000 income. c. $13,000 loss d. not determinable