Problem 5-5A Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2018. At the beginning of May, Piper Specialty Store's ledger showed Cash $6,800; Accounts Receivable $1,500; Inventory $3,300; Common Shares $8,400; and Retained Earnings $3,200. Piper Specialty Store uses a perpetual inventory system. May 1 Purchased merchandise on account from Depot Wholesale Supply Ltd. for $5,200, terms 1/10, n/30, FOB shipping point. Freight charges of $160 were paid by the appropriate party on the merchandise purchased on May 1 Sold merchandise on account to Yip Company for $3,300, terms 2/10, n/30, FOB destination. The cost of the merchandise was $2,100 4 7 Freight charges of $80 were paid by the appropriate party on the May 4 sale. 8 Received a $200 credit from Depot Wholesale Supply when merchandise was returned 9 Paid Depot Wholesale Supply in full 11 Purchased supplies for $400 cash 14 Received payment in full from Yip Company for merchandise sold on account on May 4 15 Collected $1,100 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30, with no sales discounts 18 Purchased merchandise from Harlow Distributors Inc. for $2,100, terms n/30, FOB destination 21 Freight of $40 was paid by the appropriate party on the May 18 purchase of merchandise 22 Sold merchandise to various customers for $7,100 cash. The cost of the merchandise was $4,000 29 Paid a100 cash refund to customers for returned merchandise. The cost of the returned merchandise was 60. It was restored to inventory 31 A physical inventory count was taken and determined that there was $4,200 of inventory on hand. Prepare any adjustment required Date Account Titles and Explanation Debit Credit ay 1 Inventory Accounts Payable 3 Cash Cash 4 Accounts Receivable Sales (Sale of goods on account) 4Cost of Goods Sold Inventory (Cost of goods sold recorded) Supplies Cash 8 Accounts Payable Inventory 9Accounts Payable Inventory Cash 0 11 Supplies Cash 14 Cash Sales Discounts Sales Discounts 15 Cash Cash 18 Inventory Accounts Payable 21 Cost of Goods Sold Inventory 22 Cash Sales (Sale of goods) (Sale of goods) (Cost of goods sold recorded) 29 (Return of merchandise) 29 (Return of merchandise, assuming goods are resaleable and returned to inventory) 31 Inventory Supplies Common Shares Accounts Payable Sales Sales Sales Returns and Allowances Sales Discounts Freight Out Cost of Goods Sold Prepare a partial multiple-step income statement for the month ended May 31, through to gross profit. Piper Specialty Store Ltd. Income Statement (Partial) Month Ended May 31, 2018 Sales revenues Less Net sales Gross profit Prepare the current assets section of the statement of financial position as at May 31. (List Current assets in order of liquidity. Piper Specialty Store Ltd. Statement of Financial Position (Partial) May 31, 2018 Assets Current Assets Total Current Assets