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 $10,400; Accounts Receivable $3,600; Inventory $5,200; Common Shares $11,200; and Retained Earnings $8,000. Piper Specialty has experienced a return rate of 2% of sales and uses a perpetual inventory system. 1 May 3 4 7 8 9 11 14 Purchased merchandise on account from Depot Wholesale Supply Ltd. for $7,040, terms 1/10, n/30, FOB shipping point. Freight charges of $188 were paid by the appropriate party on the merchandise purchased on May 1. Sold merchandise on account to Yip Company for $5,200, terms n/30, FOB destination. The cost of the merchandise was $4,100. Freight charges of $120 were paid by the appropriate party on the May 4 sale. Received a $140 credit from Depot Wholesale Supply when merchandise was returned. Paid Depot Wholesale Supply in full. Purchased supplies for $560 cash. Received payment in full from Yip Company for merchandise sold on account on May 4. Collected $1,280 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30. Purchased merchandise from Harlow Distributors Inc. for $4,000, terms n/30, FOB destination. Freight of $64 was paid by the appropriate party on the May 18 purchase of merchandise. Sold merchandise to various customers for $10,000 cash. The cost of the merchandise was $5,500. Paid a $128 cash refund to customers for returned merchandise. The cost of the returned merchandise was $72. It was restored to inventory. A physical inventory count was taken and determined that there was $6,480 of inventory on hand. Prepare any adjustment required. 15 18 21 22 29 31 Set up T accounts, enter the opening balances, and post the transactions. (Post entries in the order of journal entries presented in the previous part.) Cash Accounts Receivable Sales Freight Out Cost of Goods Sold