Problem 5-02A a-c (Video) Sheridan Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger 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 $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 sales of $1,900 on May 2. 10 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 refund for poor quality merchandise from supplier on cash purchase $200. 17 Purchased merchandise from Valley Distributors $1,100, FOB shipping point, terms 2/10, n/30. 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. $700, FOB destination, terms 2/10, n/30. 27 Paid Valley Distributors in full, less discount. 29 Made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $30. 31 Sold merchandise on account $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. 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. Journalize the transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record credit sale) (To record cost of merchandise sold) + . (To record cash sale) (To record cost of merchandise sold) (To record merchandise returned) . (To record cost of merchandise returned) (To record credit sale) (To record cost of merchandise sold) LINK TO TEXT LINK TO TEXT LINK TO TEXT Enter the beginning cash and capital balances and post the transactions. (Post entries in the order of journal entries presented in the previous part.) Cash Date No. 101 Balance Explanation Ref. Debit Credit Balance 31 11 J1 31 . J1 J1 31 J1 J1 Accounts Receivable Date Explanation Ref. No. 112 Balance Debit Credit 31 J1 J1 Inventory Date No. 120 Balance Explanation Ref. Debit Credit . Ji J1 J1 . J1 J1 J1 J1 J1 J1 J1 J1 J1 . J1 Supplies Date No. 126 Balance Explanation Ref. Debit Credit J1 No. 201 Accounts Payable Date Explanation Ref. Debit Credit Balance + J1 . J1 J1 J1 J1 J1 Owner's Capital Date Explanation No. 301 Balance Ref. Debit Credit Balance Sales Revenue Date Explanation Ref. Debit No. 401 Balance Credit J1 J1 J1 Sales Returns and Allowances Date Explanation Ref. No. 412 Balance Debit Credit J1 Sales Discounts Date Explanation Ref. No. 414 Balance Debit Credit . J1 Cost of Goods Sold Explanation Ref. No. 505 Balance Date Debit Credit J1 31 J1 J1 LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare an income statement through gross profit for the month of May 2020. (Enter negative amounts using either (45).) negative sign preceding the number e.g. -45 or parentheses e.g. SHERIDAN HARDWARE STORE Income Statement (Partial) $ Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR