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 and Owner's Capital of $5,000. May 1 Purchased merchandise on account from Braun's Wholesale Supply for $4,200, terms 2/10,n/30. Sold merchandise on account $2,400, terms 1/10,n/30. The cost of the merchandise sold was $1,000. 2 5 9 Received credit from Braun's Wholesale Supply for merchandise returned $250. Received collections in full, less discounts, from customers billed on May 2. Paid Braun's Wholesale Supply in full, less discount. Purchased supplies for cash $350. 10 11 12 15 Purchased merchandise for cash $1,500. Received $100 refund for return of poor-quality merchandise from supplier on cash purchase. Purchased merchandise on account from Valley Distributors for $1,400, terms 2/10,n/30,FOB shipping point. 17 19 24 25 Paid freight on May 17 purchase $180. Sold merchandise for cash $2,800. The merchandise sold had a cost of $2,000. Purchased merchandise on account from Lumley, Inc. for $600, terms 2/10,n/30. Paid Valley Distributors in full, less discount. Made refunds to cash customers for returned merchandise $60. The returned merchandisecost $30. Sold merchandise on account for $1,000 terms n/30. The cost of the merchandise sold was $600. 27 29 31 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. Your answer is correct Journalize the transactions using a perpetual inventory system. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually . Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Inventory 4200 Accounts Payable 4200 Accounts Receivable 2400 Sales Revenue 2400 (To record credit sale) Cost of Goods Sold 1000 Inventory 1000 (To record cost of merchandise sold) Accounts Payable 250 Inventory 250 Cash 2376 Sales Discounts 24 Accounts Receivable 2400 Accounts Payable 3950 Cash 3871 Inventory 79 Supplies 350 Cash 350 Inventory 1500 Cash 1500 Cash 100 Inventory 100 Inventory 1400 Accounts Payable 1400 Inventory 180 Cash Cash 2800 Sales Revenue 2800 (To record cash sale) LINN, batan Cost of Goods Sold 2000 Inventory 2000 (To record cost of merchandise sold) Inventory 600 Accounts Payable Accounts Payable 1400 Cash 1372 Inventory 28 Sales Returns and Allowances 60 Cash 60 (To record merchandise returned) Inventory 30 Sales Returns and Allowances 60 Cash 60 (To record merchandise returned) Inventory 30 30 Cost of Goods Sold (To record cost of merchandise returned) Accounts Receivable 1000 Sales Revenue 1000 (To record credit sale) Cost of Goods Sold 600 Inventory 600 (To record cost of merchandise sold) Your answer is partially correct. Enter the beginning cash and capital balances and post the transactions. (Post entries in the order of journal entries presented in the previous part.) ash Date Explanation Ref. Debit Credit Balanc May 1 V Balance May 9 J1 11 J1 J1 Dodatum MOHAMA J1 J1 01 J1 31 counts Receivable Date Explanation Ref. Debit Credit Balanc May 2 J1 2400 May 9 J1 2400 May 31 31 1000 ventory Date Explanation Ref. Debit Credit Balanc May 1 J1 4200 May 2 J1 1000 Inventory Date Explanation Ref. Debit Credit Bala May 1 J1 30 May 31 01 600 Accounts Payable Date Explanation Ref. Debit Credit Bala May 1 J1 4200 May 5 J1 250 May 10 J1 3950 CORONE May 17 J1 1400 May 25 V J1 600 May 27 J1 1400 Owner's Capital Date Explanation Ref. Debit Credit Bala Balance Sales Revenue Date Explanation Ref. Debit Credit Bala May 2 J1 2400 May 24 V J1 2800 May 31 J1 1000 Sales Returns and Allowances Date Explanation Ref. Debit Credit Bala May 29 J1 60 Sales Discounts Date Explanation Ref. Debit Credit Bala May 9 J1 24 Cost of Goods Sold Date Explanation Ref. Debit Credit Bala May 2 J1 1000