Latona Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Latona showed Cash of $5,220 and Common Stock of $5,220 May 1 Purchased merchandise on account from Gray's Wholesale Supply $4,400, terms 1/10, n/30 2 Sold merchandise on account $1,900, terms 1/10, n/30. The cost of the merchandise sold was $1,410 5 Received credit from Gray's Wholesale Supply for merchandise returned $200 9 Received collections in full, less discounts, from customers billed on sales of $1,900 on May 2 10 Paid Gray's Wholesale Supply in full, less discount. 11 Purchased supplies for cash $300 12 Purchased merchandise for cash $1,300 15 Received refund for poor quality merchandise from supplier on cash purchase $170 17 Purchased merchandise from Armand Distributors $1,100, FOB shipping point, terms 2/10, n/30 19 Paid freight on May 17 purchase $190 24 Sold merchandise for cash $3,000. The merchandise sold had a cost of $1,920 25 Purchased merchandise from Horvath, Inc. $730, FOB destination, terms 2/10, n/30 27 Paid Amland Distributors in full, less discount. 29 Made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $20. 31 Sold merchandise on account $1,090, terms n/30. The cost of the merchandise sold was $560 2 3 Latona Hardware's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 311 Common Stock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold 0 ournalize the transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation May 1 Debit Credit May 2 (To record credit sale) (To record credit sale) (To record cost of merchandise sold) May 5 May 9 May 10 May 11 May 12 May 15 May 17 May 19 May 24 (To record cash sale) (To record cost of merchandise sold) May 25 May 27 May 29 (To record cost of merchandise returned) May 31 May 31 To record credit sale) (To record cost of merchandise sold)