P5-SA Eagle Hardware Store Ltd. completed the following merchandising transactions in the morith 8l the beginning of May, Eagle's ledger showed Cash $7,000; Accounts Receivable $1,500; Inventory $3,500; Common Shares $8,000; and Retained Earnings $4,000. Eagle Hardware uses a perpetual inventory system. tions anc financia (L0 2,3 Purchased merchandise on account from Depot Wholesale Supply Ltd. for $5,800, terms 1/10, n/30, FOB shipping point. Freight charges of $145 were paid by the appropriate party on the merchandise purchased on May 1. Sold merchandise on account to Shep Ltd. for $3,500, terms 2/10, n/30, FOB destination. The cost of the merchandise was $2,100. May 1 3 Freight charges of $90 were paid by the appropriate party on the May 4 sale. 8 7 Received a $200 credit from Depot Wholesale Supply when merchandise was returned. Paid Depot Wholesale Supply in full. Purchased supplies for $400 cash. Received payment in full from Shep Ltd. for merchandise sold on account on May 4. Collected $1,000 of the accounts receivable outstanding at the beginning of the month. All 11 14 15 accounts were originally sold on terms of n/30, with no sales discounts. Purchased merchandise from Harlow Distributors Inc. for $2,000, terms n/30, FOB destination. 18 Freight of $50 was paid by the appropriate party on the May 18 purchase of merchandise. 21 Sold merchandise to various customers for $6,500 cash. The cost of the merchandise was $3,900. 22 Paid a $100 cash refund to customers for returned merchandise. The cost of the returned 29 merchandise was $60. It was restored to inventory A physical inventory count was taken and determined that there was $5,100 of inventory on hand. 31 Prepare any adjustment required. Instructions a) Record the May transactions. (b) Set up T accounts, enter the opening balances, and post the transactions recorded in part (a). Prepare a partial multiple-step income statement for the month ended May 31, through to gross profit. (c) Prepare the current assets section of the statement of financial position as at May 31, (d)