Following are the May 2015 merchandising transactions for the Taber Corn Chip Company. Taber Corn Chip Company uses a perpetual inventory system. The terms of all sales to customers are 3/15 n/45 unless otherwise noted. Prepare all necessary journal entries. May 1 Sold merchandise on account to the Corn Corporation, retail value of $22,500, cost value of $13,750. May 3 Purchased $36,000 of merchandise from Coaldale Co., terms 2/10 EOM. May 4 Gave the Corn Corp. a price reduction of $1,500 to keep merchandise that had been damaged in delivery. May 4 Sold merchandise on credit to IM. Reddi, retail value of $12,000, cost of $4,500. May 4 Purchased merchandise from the Southern Supply Centre, terms n/30, value of $6,750. Returned $6,000 of merchandise that was found to be faulty to the Coaldale Co. May 10 May 12 Paid for the merchandise purchased from the Coaldale Co. May 15 Received payment from P. Reddi, net of the discount. May 21 Paid Provincial Parcel $120 for having delivered the Coaldale Co. order. May 31 Cash sales for the second half of the month were $45,000 at retail, cost of $22,000.