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 $10,200; Accounts Receivable $3,500; Inventory $5,100; Common Shares $11,000; and Retained Earnings $7,800. First Choice 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 $6,940, terms 1/10, n/30, FOB shipping point Freight charges of $185 were paid by the appropriate party on the merchandise purchased on May 1. Sold merchandise on account to Ry Company for $5,100, terms n/30, FOB destination. The cost of the merchandise was $4,000. Freight charges of $118 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 $550 cash. Received payment in full from Ry Company for merchandise sold on account on May 4. Collected $1,260 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 $3,900, terms n/30, FOB destination. Freight of $63 was paid by the appropriate party on the May 18 purchase of merchandise. Sold merchandise to various customers for $9,800 cash. The cost of the merchandise was $5,400. Paid a $126 cash refund to customers for returned merchandise. The cost of the returned merchandise was $71. It was restored to inventory. A physical inventory count was taken and determined that there was $6,380 of inventory on hand. Prepare any adjustment required. 15 18 21 22 29 31 Record the May transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit May 1 Inventory Accounts Payable May 3 Inventory Cash May 4 Accounts Receivable Sales (Sale of goods on account) May 4 Cost of Goods Sold Inventory (Cost of goods sold recorded) Freight Out May 7 Cash May 8 Accounts Payable Inventory May 9 Accounts Payable Cash Inventory May 11 Supplies Cash May 14 V Cash Sales Discounts May 15 Cash Accounts Receivable May 18 V Inventory Accounts Payable May 21 V No Entry No Entry May 22 Cash Sales (Sale of goods) May 22 V Cost of Goods Sold Inventory (Cost of goods sold recorded) May 29 Sales Returns and Allowances Cash (Return of merchandise) May 29 Inventory TE Cost of Goods Sold (Return of merchandise, assuming goods are resaleable and returned to inventory) May 31 7 Cost of Goods Sold Inventory