just need explanation for May 31
Piper Specialty Store Ltd, completed the following merchandising transactions in the month of May 2021. At the beginning of May, Piper's ledger showed Cash $7,000: Accounts Receivable $1,900: Inventory $3,500; Common Shares $7.800; and Retained Earnings $4,600. Piper Specialty has experienced a return rate of 2% of sales and uses a perpetual inventory system. 1 May 3 4 7 Purchased merchandise on account from Depot Wholesale Supply Ltd. for $5,340, terms 1/10,n/30, FOB shipping point Freight charges of $137 were paid by the appropriate party on the merchandise purchased on May 1. Sold merchandise on account to Vip Company for $3,500, terms n/30, FOB destination. The cost of the merchandise was $2,400 Freight charges of $86 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 $390 cash. Received payment in full from Yip Company for merchandise sold on account on May 4. Collected $940 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of 1/30 8 9 11 14 15 18 21 22 Purchased merchandise from Harlow Distributors Inc for $2,300, terms 1/30, FOB destination Freight of $47 was paid by the appropriate party on the May 18 purchase of merchandise. Sold merchandise to various customers for $6,600 cash. The cost of the merchandise was $3,800, Paid a 594 cash refund to customers for returned merchandise. The cost of the returned merchandise was $55.1 was restored to inventory A physical inventory count was taken and determined that there was $4,780 of inventory on hand. Prepare any adjustment required 29 31 Date Account Titles and Explanation Debit Credit May 1 inventory 5340 Accounts Payable 5340 May 3 Iewentory 137 Cash 137 May 4 Accounts Receivable 3.500 Sales 3430 Refund ability 70 (Sale of goods on account) May 4 Cost of Goods Sold 2352 Estimated entory Returns 45 Inventory 2400 (Cost of goods sold recorded) May 7 Freight Out 36 36 Mws Accounts Payable 140 Inwendary 140 May Aco Pasti 5200 5145 Irmentory May 11 Sophies "Accounts Receivable 3.500 May 15 Cash 940 Accounts Receivable 940 May 18 Inventory 2300 Accounts Payable 2300 May 21 No Entry No Entry May 22 Cash 0600 Sales 6468 Refund ability 132 (Sale of goods) May 22 Costot Goods Sold 3720 Estimated Inventory Returns 70 Irwantory (Cost of goods sold recorded) 3800 Mwy 29, Refund ability 96 (Return of merchandise) 94 May 2 Inventor 55 Estimated Return 53 Return of merchandise, assuming goods are reseable and returned to inventory)
