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 \$8,200; Accounts Receivable $2,500; Inventory $4,100; Common Shares \$9,000; and Retained Earning $5,800. First Choice has experienced a return rate of 2% of sales and uses a perpetual inventory system. May 1 Purchased merchandise on account from Depot Wholesale Supply Ltd. for $5,940, terms 1/10,n/30, FOB shipping point. 3 Freight charges of $155 were paid by the appropriate party on the merchandise purchased on May 1. 4 Sold merchandise on account to Ry Company for $4,100, terms n/30, FOB destination. The cost of the merchandise was $3.000. 7 Freight charges of $98 were paid by the appropriate party on the May 4 sale. 8 Received a $140 credit from Depot Wholesale Supply when merchandise was returned. 9 Paid Depot Wholesale Supply in full. 11 Purchased supplies for $450 cash 14 Received payment in full from Ry Company for merchandise sold on account on May 4. 15 Collected $1,060 of the accounts receivable outstanding at the beginning of the month. All accounts were. originally sold on terms of n/30. 18 Purchased merchandise from Hariow Distributors Inc for $2,900, terms n/30, FOB destination. 21 Freight of $53 was paid by the appropriate party on the May 18 purchase of merchandise- 22. Sold merchandise to various customers for $7,800 cash. The cost of the merchandise was $4,400. 29 Paid a $106 cash refund to customers for returned merchandise. The cost of the returned merchandise was $61. It was restored to inventory. 31 A physical inventory count was taken and determined that there was $5,380 of inventory on hand. Prepare any adjustment required. (Sale of goods on account) Coet coseh solt (Cast of goods sold tecorded) freigea Out Caik. Accouras Peysle Ifectiory Accosata Perable Cash. Suppliti cuh. Caln Nccoumti Recenvable Iriectiary Accocunti Parable Nis Eintry (sole of goods) (Cost of goods sold recorded) Refund Liability Cash: (Return of merchandise) Invendory Fstimated inerisoy fleturnis (Rveturn of merchandise, assuming goods are resaleable and returned to inventory) Cost of Geeds Sold A pios spoog jo soo Prepare a partial multiple-step statement of income for the month ended May 31. through to gross profit. 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 \$8,200; Accounts Receivable $2,500; Inventory $4,100; Common Shares \$9,000; and Retained Earning $5,800. First Choice has experienced a return rate of 2% of sales and uses a perpetual inventory system. May 1 Purchased merchandise on account from Depot Wholesale Supply Ltd. for $5,940, terms 1/10,n/30, FOB shipping point. 3 Freight charges of $155 were paid by the appropriate party on the merchandise purchased on May 1. 4 Sold merchandise on account to Ry Company for $4,100, terms n/30, FOB destination. The cost of the merchandise was $3.000. 7 Freight charges of $98 were paid by the appropriate party on the May 4 sale. 8 Received a $140 credit from Depot Wholesale Supply when merchandise was returned. 9 Paid Depot Wholesale Supply in full. 11 Purchased supplies for $450 cash 14 Received payment in full from Ry Company for merchandise sold on account on May 4. 15 Collected $1,060 of the accounts receivable outstanding at the beginning of the month. All accounts were. originally sold on terms of n/30. 18 Purchased merchandise from Hariow Distributors Inc for $2,900, terms n/30, FOB destination. 21 Freight of $53 was paid by the appropriate party on the May 18 purchase of merchandise- 22. Sold merchandise to various customers for $7,800 cash. The cost of the merchandise was $4,400. 29 Paid a $106 cash refund to customers for returned merchandise. The cost of the returned merchandise was $61. It was restored to inventory. 31 A physical inventory count was taken and determined that there was $5,380 of inventory on hand. Prepare any adjustment required. (Sale of goods on account) Coet coseh solt (Cast of goods sold tecorded) freigea Out Caik. Accouras Peysle Ifectiory Accosata Perable Cash. Suppliti cuh. Caln Nccoumti Recenvable Iriectiary Accocunti Parable Nis Eintry (sole of goods) (Cost of goods sold recorded) Refund Liability Cash: (Return of merchandise) Invendory Fstimated inerisoy fleturnis (Rveturn of merchandise, assuming goods are resaleable and returned to inventory) Cost of Geeds Sold A pios spoog jo soo Prepare a partial multiple-step statement of income for the month ended May 31. through to gross profit