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 $7,600; Accounts Receivable $2,200; Inventory $3,800; Common Shares $8,400; and Retained Earnings $5,200. 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 $5,640, terms 1/10, n/30, FOB shipping point. Freight charges of $146 were paid by the appropriate party on the merchandise purchased on May 1. Sold merchandise on account to Ry Company for $3,800, terms n/30, FOB destination. The cost of the merchandise was $2,700. Freight charges of $92 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 $420 cash. Received payment in full from Ry Company for merchandise sold on account on May 4. Collected $1,000 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 $2,600, terms n/30, FOB destination. Freight of $50 was paid by the appropriate party on the May 18 purchase of merchandise. Sold merchandise to various customers for $7,200 cash. The cost of the merchandise was $4,100. Paid a $100 cash refund to customers for returned merchandise. The cost of the returned merchandise was $58. It was restored to inventory. A physical inventory count was taken and determined that there was $5,080 of inventory on hand. Prepare any adjustment required. 15 18 21 22 29 31 - Your answer is partially correct Record the May transactions. List all debit entries before credit entries. Credit account titles are automatically indented when the amount is enterad. Do not indent manually. If no cntry is required, select "No Entry for the account titles and enter Ofar the mounts.) Date Debit Credit Account Titles and Explanation Ily May 1 5640 Accounts Payable M3 wentory 146 Cash M ACCUTS Receivable 3800 (Sale of goods or account) Goods May 4 I wtory 2700 (Cast af gards sold monded) May Freiste Out 42 Cash Mys ALY PL 140 Tiny Ma, 9 scounts Parabic Twentory Cash May 11 Supplies 420 May 14 Cash Accounts covebic May 22 Cash Accounts Receive My 18 Ily Ancounts Parah May 21 N5 Entry Norcry May 22 Cash Sales (Sale of goods) May 22 (Cast af gandesal rended) M529 (Return of merchandise May 29 (Relurn of merchandise, assuming goods are resaleable and returned to inventory May 31