Pharoah Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Pharoah showed Cash of $5,000 and Owner's Capital of $5,000. May 1 Purchased merchandise on account from Braun's Wholesale Supply $4,500, terms 2/10, n/30. 2 Sold merchandise on account $2,400, terms 1/10, n/30. The cost of the merchandise sold was $1,000. 5 Received credit from Braun's Wholesale Supply for merchandise returned $400. 9 Received collections in full, less discounts, from customers billed on sales of $2,400 on May 2. 10 Paid Braun's Wholesale Supply in full, less discount 11 Purchased supplies for cash $400. 12 Purchased merchandise for cash $1,300. 15 Received refund for poor quality merchandise from supplier on cash purchase $100. 17 Purchased merchandise from Valley Distributors $1,200, FOB shipping point, terms 2/10, n/30. 19 Paid freight on May 17 purchase $120. 24 Sold merchandise for cash $3,300. The merchandise sold had a cost of $2,000. 25 Purchased merchandise on account from Lumley, Inc. $750, FOB destination, terms 2/10, n/30. 27 Paid Valley Distributors in full, less discount. 29 Made refunds to cash customers for defective merchandise $60. The returned merchandise had a fair value of $40. 31 Sold merchandise on account $1,500, terms n/30. The cost of the merchandise sold was $500. Pharoah 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. 301 Owner's Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. JL Sales Discounts Date Explanation Ref. No. 414 Balance Debit Credit J1 Cost of Goods Sold Date Explanation Ref. No. 505 Balance Debit Credit J1 J1 CONO J1 DOO J1 Accounts Receivable Date Explanation Ref. No. 112 Balance Debit Credit May 2 J1 2400 2400- May 9V J1 2400 4800 May 31 J1 1500 6300 Inventory Date No. 120 Balance Explanation Ref. Debit Credit J1 J1 J1 J1 J1 jedicITTO J1 J1 J1 J1 J1 J1 J1 Supplies Date No. 126 Balance Explanation Ref. Debit Credit J1 Accounts Payable No. 201 Accounts Payable Date Explanation No. 201 Balance Ref. Debit Credit May 1 v J1 May 5 J1 J1 J1 May 27 J1 May 31 J1 Owner's Capital Date Explanation Ref. No. 301 Balance Debit Credit Balance No. 401 Sales Revenue Date Explanation Ref. Debit Credit Balance J1 J1 J1 Sales Returns and Allowances Date Explanation Ref. No. 412 Balance Debit Credit J1 Sales Discounts Date Explanation No. 414 Balance Ref. Debit Credit J1 JL Sales Discounts Date Explanation Ref. No. 414 Balance Debit Credit J1 Cost of Goods Sold Date Explanation Ref. No. 505 Balance Debit Credit J1 J1 CONO J1 DOO J1
