Part II (16 marks) Honey Company is a wholesaler of sports clothes. The Company uses a perpetual inventory method Required: Prepare the journal entries for the following transactions in May: 3 Purchased 2,000 pieces of sports clothes for $300 per piece from Tommy Company. The payment would be due on 18 May. 5 Returned 100 pieces of sports clothes to Tommy Company. 8 Sold 400 pieces of the sports clothes purchased on 3 May to Paul Ltd with gross profit rate of 40% for cash. 18 Paid to Tommy Company for the sports clothes purchased in May. 26 Paul Ltd returned 100 pieces of sports clothes purchased on 8 May to Honey Company because they are the wrong size. 31 An inventory taking on 31 May reflected that $2,000 inventories were damaged