Sales Sales Revenue Less : Sales Discounts Sales Returns and Allowances Net Sales Sales Returns and Allowances Gross Profit V $ 24 i 60 i $ $ 6200 0000 6116 6200 84 6116

Sales Soles Revenue Less Sales Discounts Sales Returns and Allowances Net Sales Sales Returns and Allowances Gross Profit $ 6200 $ 24 60 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 $5,000, Inventory of $7,100 and Owner's Capital of $12,100. May 2 Sold merchandise on account $2,400, terms 1/10,n/30. The cost of the merchandise sold was $1,000. 9 Received collections in full, less discounts, from customers billed on sales of $2,400 on May 2 . 24 Sold merchandise for cash $2,800. The merchandise sold had a cost of $2,000. 29 Made refunds to cash customers for defective merchandise $60. The returned merchandise had a fair vatue of $30. 31 Sold merchandise on account $1,000 terms n/30. The cost of the merchandise sold was $600. Sheridan Hardware's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory. 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