First Choice Ltd. completed the following merchandising transactions in the month of May 2021. At the beginning of May, First Choice's ledger showed Cash $5,600; Accounts Receivable $1,200; Inventory $2,800; Common Shares $6,400; and Retained Earnings $3,200. First Choice has experienced a return rate of 2% of sales and uses a perpetual inventory system. 1 May 3 4 7 00 ON 9 11 14 15 Purchased merchandise on account from Depot Wholesale Supply Ltd. for $4,640, terms 1/10, n/30, FOB shipping point. Freight charges of $116 were paid by the appropriate party on the merchandise purchased on May 1. Sold merchandise on account to Ry Company for $2,800, terms n/30, FOB destination. The cost of the merchandise was $1,700. Freight charges of $72 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 $320 cash. Received payment in full from Ry Company for merchandise sold on account on May 4. Collected $800 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 $1,600, terms n/30, FOB destination. Freight of $40 was paid by the appropriate party on the May 18 purchase of merchandise. Sold merchandise to various customers for $5,200 cash. The cost of the merchandise was $3,100. Paid a $80 cash refund to customers for returned merchandise. The cost of the returned merchandise was $48. It was restored to inventory. A physical inventory count was taken and determined that there was $4,080 of inventory on hand. Prepare any adjustment required. 18 21 22 29 31 Set up T accounts, enter the opening balances, and post the transactions. (Post entries in the order of journal entries presented in the previous part.) Cash May 1 Bal. May 14