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 $4,500 and Owner's Capital of $4,500. May 1 Purchased merchandise on account from Braun's Wholesale Supply for \$3,800, terms 2/10, n/30. 2 Sold merchandise on account $1,800, terms 1/10,n/30. The cost of the merchandise sold was $1,200. 5 Received credit from Braun's Wholesale Supply for merchandise returned $250. 9 Received collections in full, less discounts, from customers billed on May 2. 10 Paid Braun's Wholesale Supply in full, less discount. 11 Purchased supplies for cash $350. 12 Purchased merchandise for cash $1,500. 15 Received $150 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise on account from Valley Distributors for $1,400, terms 2/10,n/30,FOB shipping point. 19 Paid freight on May 17 purchase $100. 24 Sold merchandise for cash $3,400. The merchandise sold had a cost of $2,200. 25 Purchased merchandise on account from Lumley, Inc. for $750, terms 2/10, n/30. 27 Paid Valley Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $80. The returned merchandisecost $20. 31 Sold merchandise on account for $1,000 terms n/30. The cost of the merchandise sold was $500. Date May 1 May 1 (To record credit sale) May 1 Account Titles and Explanation Debit Credit Credit (To record cost of merchandise sold) (To record cash sale) (To record cash sale) (To record cost of merchandise sold) (To record merchandise returned) (To record cost of merchandise sold) (To record merchandise returned) (To record cost of merchandise returned) (To record cost of merchandise returned) (To record credit sale) (To record cost of merchandise sold) Cash No. 101 Date May 1 Balance May 9 May 10 May 11 May 12 May 15 May 19 May 24 May 27 V May 29 Explanation Ref. J1 J1 J1 J1 J1 J1 J1 J1 J1 Credit Balance Accounts Receivable No. 112 Date May 2 May 9 May 31 Explanation Ref. J1 J1 J1 Credit Debit Balance Inventory Date Explanation May 1 May 2 May 5 May 10 May 12 V May 15 May 17 May 19 May 24 May 25 No. 120 Credit Balance J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 Debit 1 1 1 1 1 1 1 1 J1 May 27 May 29 May 31 J1 J1 J1 Supplies No. 126 Date Explanation Ref. Debit Credit Balance May 11 v J1 350 Accounts Payable No. 201 Date Explanation May 1 May 5 May 10 May 17 May 25 May 27 v Owner's Capital Date Explanation Ref. May 1 Balance Ref. J1 J1 J1 J1 J1 J1 J1 Credit Balance No. 301 Balance Debit Credit 4500 Sales Revenue No. 401 Date May 2 May 24 May 31 Explanation Ref. J1 J1 J1 Sales Returns and Allowances Date Explanation Ref. May 29 J1 Sales Discounts Credit Balance Balance No. 412 Balance No. 414 \begin{tabular}{cccc|} \hline Date & Explanation & Ref. & Debit \\ \hline May 9 & & J1 & \\ \hline \end{tabular} Credit Balance Cost of Goods Sold No. 505 Date Explanation May 2 May 24 V May 29 May 31 Debit J1 J1 J1 J1 Credit 1 1 1 1 Balance PHAROAH HARDWARE STORE Income Statement (Partial) $ $