Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2021 . At the beginning of May, Piper's ledger showed Cash \$8,400; Accounts Receivable \$2,600; Inventory $4,200; Common Shares $9,200; and Retained Earnings $6,000. Piper Specialty has experienced a return rate of 2% of sales and uses a perpetual inventory system. May1point.PurchasedmerchandiseonaccountfromDepotWholesaleSupplyLtd.for$6,040,terms1/10,n/30,FOBshipping 3 Freight charges of $158 were paid by the appropriate party on the merchandise purchased on 1. 4 Sold merchandise on account to Yip Company for $4,200, terms n/30, FOB destination. The cost of the merchandise was $3,100. 7 Freight charges of $100 were paid by the appropriate party on the May 4 sale. 8 Received a $140 credit from Depot Wholesale Supply when merchandise was returned. 9 Paid Depot Wholesale Supply in full. 11 Purchased supplies for $460 cash. 14 Received payment in full from Yip Company for merchandise sold on account on May 4. 15 Collected $1,080 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30. 18 Purchased merchandise from Harlow Distributors Inc. for $3,000, terms n/30, FOB destination. 21 Freight of $54 was paid by the appropriate party on the May 18 purchase of merchandise. 22 Sold merchandise to various customers for $8,000 cash. The cost of the merchandise was $4,500. 29 Paid a $108 cash refund to customers for returned merchandise. The cost of the returned merchandise was $62. It was restored to inventory. 31 A physical inventory count was taken and determined that there was $5,480 of inventory on hand. Prepare any adjustment required. ecord the May transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the mount is entered. Do not indent manually. If no entry is reauired. select "No Entry" for the account titles and enter O for the amounts.) Di Supplies Cash Accounts Receivable Accounts Receivable Accounts Payable No Entry No Entry Sales Refund Liability (Sale of goods) Cost of Goods Sold 540 Estimated Inventory Returns 4500 Inventory (Cost of goods sold recorded) Sales Refund Liability (Sale of goods) Cost of Goods Sold \begin{tabular}{|l|} \hline 540 \\ \hline \end{tabular} Estimated Inventory Returns \begin{tabular}{|c|} \hline 4500 \\ \hline \end{tabular} (Cost of goods sold recorded) (Return of merchandise) May 29V Inventory 62 Estimated Inventory Returns (Return of merchandise, assuming goods are resaleable and returned to inventory) May 31 Cost of Goods Sold 241 Inventory Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2021 . At the beginning of May, Piper's ledger showed Cash \$8,400; Accounts Receivable \$2,600; Inventory $4,200; Common Shares $9,200; and Retained Earnings $6,000. Piper Specialty has experienced a return rate of 2% of sales and uses a perpetual inventory system. May1point.PurchasedmerchandiseonaccountfromDepotWholesaleSupplyLtd.for$6,040,terms1/10,n/30,FOBshipping 3 Freight charges of $158 were paid by the appropriate party on the merchandise purchased on 1. 4 Sold merchandise on account to Yip Company for $4,200, terms n/30, FOB destination. The cost of the merchandise was $3,100. 7 Freight charges of $100 were paid by the appropriate party on the May 4 sale. 8 Received a $140 credit from Depot Wholesale Supply when merchandise was returned. 9 Paid Depot Wholesale Supply in full. 11 Purchased supplies for $460 cash. 14 Received payment in full from Yip Company for merchandise sold on account on May 4. 15 Collected $1,080 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30. 18 Purchased merchandise from Harlow Distributors Inc. for $3,000, terms n/30, FOB destination. 21 Freight of $54 was paid by the appropriate party on the May 18 purchase of merchandise. 22 Sold merchandise to various customers for $8,000 cash. The cost of the merchandise was $4,500. 29 Paid a $108 cash refund to customers for returned merchandise. The cost of the returned merchandise was $62. It was restored to inventory. 31 A physical inventory count was taken and determined that there was $5,480 of inventory on hand. Prepare any adjustment required. ecord the May transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the mount is entered. Do not indent manually. If no entry is reauired. select "No Entry" for the account titles and enter O for the amounts.) Di Supplies Cash Accounts Receivable Accounts Receivable Accounts Payable No Entry No Entry Sales Refund Liability (Sale of goods) Cost of Goods Sold 540 Estimated Inventory Returns 4500 Inventory (Cost of goods sold recorded) Sales Refund Liability (Sale of goods) Cost of Goods Sold \begin{tabular}{|l|} \hline 540 \\ \hline \end{tabular} Estimated Inventory Returns \begin{tabular}{|c|} \hline 4500 \\ \hline \end{tabular} (Cost of goods sold recorded) (Return of merchandise) May 29V Inventory 62 Estimated Inventory Returns (Return of merchandise, assuming goods are resaleable and returned to inventory) May 31 Cost of Goods Sold 241 Inventory
