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Sandhill Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Sandhills' ledger showed Cash of $7.900 and

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Sandhill Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Sandhills' ledger showed Cash of $7.900 and Common Stock of $7.900. May 1 Purchased merchandise on account from Black Wholesale Supply for $7.900 terms 1/10, 1/30 2 Sold merchandise on account for $4,300, terms 2/10, 1/30. The cost of the merchandise sold was $3.200. 5 Received credit from Black Wholesale Supply for merchandise returned $200. 9 Received collections in full, less discounts from customers billed on May 2. 10 Paid Black Wholesale Supply in full, less discount. 11 Purchased supplies for cash $900. 12 Purchased merchandise for cash $3,000. 15 Received $230 refund for return of poor quality merchandise from supplier on cash purchase. 17 Purchased merchandise from Wilhelm Distributors for $2.400, terms 2/10,n/30. 19 Paid freight on May 17 purchase $250. 24 Sold merchandise for cash $5.500. The cost of the merchandise sold was $4.100 25 Purchased merchandise from Clasps Inc. for $800, terms 3/10,n/30. 27 Paid Wilhelm Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $108. The returned merchandise had cost $98. 31 Sold merchandise on account for $1.280. terms n/30. The cost of the merchandise sold was 5864 Date Account Titles and Explanation Debit Credit May 1 Inventory 7900 Accounts Payable 7900 May 2 Accounts Receivable 4300 Sales Revenue 4300 (To record credit sale) > 3200 3200 (To record cost of merchandise sold) 86 4300 7700 7623 900 3000 230 2400 2400 May 15 Accounts Payable 250 Inventory 250 May 17 - Inventory 2400 Accounts Receivable 2400 (To record sales) (To record cost of merchandise sold) 5500 5500 800 2352 (To record payment for returned merchandise) 108 (To record cost of goods returned) 108 (To record credit sale) (To record cost of goods sold on account) 1280

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