Question 1

Maia's Bike Shop uses the perpetual inventory system and had the following transactions during the month of May:

May 3 Sold merchandise to a customer on credit for $600. The cost of the merchandise sold was $350.

May 4 Sold merchandise to a customer for cash of $425. The cost of themerchandise was $250.

May 6 Sold merchandise to a customer on credit for $1,300. The cost of the merchandise sold was $750.

May 8 The customer from May 3 returned merchandise with a selling price of $100.The cost of the merchandise returned was $55.

May 31 The customer from May 3 paid the full amount due.

Prepare the required journal entries that Maia's Bike Shop must make to record these transactions.