Please explain
ieridan Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, dger of Sheridan showed Cash of $5,500 and Owner's Capital of $5,500. May 1 Purchased merchandise on account from Braun's Wholesale Supply for $4,200, terms 2/10,n/30. 2 Sold merchandise on account $1,900, terms 1/10,n/30. The cost of the merchandise sold was $1,600. 5 Received credit from Braun's Wholesale Supply for merchandise returned $350. 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 $400. 12 Purchased merchandise for cash $1,200. 15 Received $200 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise on account from Valley Distributors for $1,100, terms 2/10,n/30,FOB shipping point. 19 Paid freight on May 17 purchase $100. 24 Sold merchandise for cash $3,500. The merchandise sold had a cost of $2,000. 25 Purchased merchandise on account from Lumley, Inc. for $700, terms 2/10,n/30. 27 Paid Valley Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $70. The returned merchandisecost $30. 31 Sold merchandise on account for $1,500 terms n/30. The cost of the merchandise sold was $500. Sheridan Hardware's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. Sunolies. No. 201 Accounts Payable, No. 301 Owner's Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 4 (Torecord cash sale) (To recoid cost of merchandise sold) (Totecoid nerchandise returned) (To record cost of merchandise retume (To record credit sale) (To record cost of merchandise sold) Dace Acoount fitles and Explanarion Debit Credit (toinecord credt salen) (Porecoid cost of meictardis soid) (To record cash sale) Enter the beginning cash and capital balances and post the transactions. (Post entries in the order of journal entries presented in the previous part.) inventory No. 120 Date Explanation Ref. Debit Bredit Balance J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 31 j1 bwner's Capital No. 301 Phepate a multiplentstep ningine statement through guss profit for the month of Mav 2022 (use the vedger baiances from part b and assume that no adjustments ane nedes atyy (Enter negative amounts using either a negative sign preceding the number e. 45 or parentheses eg. (45)
