First Choice Ltd. completed the following merchandising transactions in the month of May 2018. At the beginning of May, First Choices ledger showed Cash $6,400; Accounts Receivable $1,300; Inventory $3,200; Common Shares $8,600; and Retained Earnings $2,300. First Choice uses a perpetual inventory system.

May	1		Purchased merchandise on account from Depot Wholesale Supply Ltd. for $5,200, terms 1/10, n/30, FOB shipping point.
	3		Freight charges of $150 were paid by the appropriate party on the merchandise purchased on May 1.
	4		Sold merchandise on account to Ry Company for $3,200, terms 2/10, n/30, FOB destination. The cost of the merchandise was $2,300.
	7		Freight charges of $90 were paid by the appropriate party on the May 4 sale.
	8		Received a $200 credit from Depot Wholesale Supply when merchandise was returned.
	9		Paid Depot Wholesale Supply in full.
	11		Purchased supplies for $500 cash.
	14		Received payment in full from Ry Company for merchandise sold on account on May 4.
	15		Collected $1,000 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30, with no sales discounts.
	18		Purchased merchandise from Harlow Distributors Inc. for $2,000, terms n/30, FOB destination.
	21		Freight of $50 was paid by the appropriate party on the May 18 purchase of merchandise.
	22		Sold merchandise to various customers for $7,100 cash. The cost of the merchandise was $3,900.
	29		Paid a $100 cash refund to customers for returned merchandise. The cost of the returned merchandise was $50. It was restored to inventory.
	31		A physical inventory count was taken and determined that there was $3,900 of inventory on hand. Prepare any adjustment required.

Record the May transactions. (Credit account titles are outomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account tities and enter for the amounts. Round answers to the nearest whole dollar.eg. 5,275.) Debit Credit Date Account Titles and Explanation May 1 (Sale of goods on account) (Cost of goods sold recorded) (Sale of goods) (Cost of goods sold recorded) (Return of merchandise) (Return of merchandise, assuming goods are resaleable and returned to inventory) Set up T accounts, enter the opening balances, and post the transactions. (Post entries in the order of joumal entries presented in the previous part.) Cash Accounts Receivable Inventory Supplies Common Shares Accounts Payable Sales Returns and Allowances Sales Discounts Freight Out Cost of Goods Sold Retained Earnings Prepare a partial multiple-step income statement for the month ended May 31, through to gross profit. First Choice Ltd. Income Statement (Partial) e Textbook and Media Prepare the current assets section of the statement of financial position as at May 31. (List Current assets in order of liquidity.) First Choice Ltd. Statement of Financial Position (Partial) Assets