Kala kaua Merchandising had the following transactions during May:

May 1 Beginning inventory was 40 units valued at $50 per unit.

May 5 Purchased 160 units of merchandise on account for a total cost of $8,640, terms n/15,

FOB shipping point.

May 9 Paid transportation cost on the May 5 purchase, $480.

May 10 Returned four units of defedive merchandise purchased on May 5.

May 11 Sold 50 units for $120 per unit on account.

May 15 Paid for the May 5 purchase, less the retum.

May 20 Sold 20 units for $120 per unit on account.

Required:

Assuming FIFO and that the perpetual inventory system is used, prepare the journal entries to record

the above transactions. Omit explanations.