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 $5,500 and Owners Capital of $5,500 May 1 Purchased merchandise on account from Braun's Wholesale Supply $4,200, terms 2 10, n 30 2 Sold merchandise on account $1,900, terms 1 10, n 30 The cost of the merchandise sold was $1,600 5 Received credit from Braun's Wholesale Supply for merchandise returned $350 9 Received collections in full, less discounts, from customers billed on sales of $1,900 on May 2 10 Paid Braun's Wholesale Supply in full, less discount 11 Purchased supplies for cash $400 12 Purchased merchandise for cash $1,200 15 Received refund for poor quality merchandise from supplier on cash purchase $200 17 Purchased merchandise from Valley Distributors $1,100, FOB shipping point, terms 2 10, n 30 19 Paid freight on May 17 purchase $100 24 Sold merchandise for cash $3,500 The merchandise sold had a cost of $2,000 25 Purchased merchandise on account from Lumley, Inc $700, FOB destination, terms 2 10, n 30 27 Paid Valley Distributors in full, less discount 29 Made refunds to cash customers for defective merchandise $70 The returned merchandise had a fair value of $30 31 Sold merchandise on account $1,500, terms n 30 The cost of the merchandise sold was $500 Sheridan Hardwares 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 Owners Capital, No 401 Sales Revenue, No 412 Sales Returns and Allowances, No 414 Sales Discounts, and No 505 Cost of Goods Sold No 126 Supplies Date Explanation Ref Debit Credit Balance J1 No 201 Accounts Payable Date Explanation Ref Debit Credit Balance J1 J1 J1 J1 J1 J1 No 301 Owner's Capital Date Explanation Ref Debit Credit Balance Balance Sales Revenue No 401 Balance Date Explanation Ref Debit Credit J1 J1 J1 No 412 Sales Returns and Allowances Date Explanation Ref Debit Credit Balance J1 Sales Discounts No 414 Date Explanation Ref Debit Credit Balance J1 No 505 Cost of Goods Sold Date Explanation Ref Debit Credit Credit Balance J1 J1 J1 J1

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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

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 $5,500 and Owners Capital of $5,500.

May 1		Purchased merchandise on account from Braun's Wholesale Supply $4,200, terms 2/10, n/30.
2		Sold merchandise on account $1,900, terms 1/10, n/30. The cost of the merchandise sold was $1,600.
5		Received credit from Braun's Wholesale Supply for merchandise returned $350.
9		Received collections in full, less discounts, from customers billed on sales of $1,900 on May 2.
10		Paid Braun's Wholesale Supply in full, less discount.
11		Purchased supplies for cash $400.
12		Purchased merchandise for cash $1,200.
15		Received refund for poor quality merchandise from supplier on cash purchase $200.
17		Purchased merchandise from Valley Distributors $1,100, FOB shipping point, terms 2/10, n/30.
19		Paid freight on May 17 purchase $100.
24		Sold merchandise for cash $3,500. The merchandise sold had a cost of $2,000.
25		Purchased merchandise on account from Lumley, Inc. $700, FOB destination, terms 2/10, n/30.
27		Paid Valley Distributors in full, less discount.
29		Made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $30.
31		Sold merchandise on account $1,500, terms n/30. The cost of the merchandise sold was $500.

Sheridan Hardwares 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 Owners Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. image text in transcribed

No. 126 Supplies Date Explanation Ref. Debit Credit Balance J1 No. 201 Accounts Payable Date Explanation Ref. Debit Credit Balance J1 J1 J1 J1 J1 J1 No. 301 Owner's Capital Date Explanation Ref. Debit Credit Balance Balance Sales Revenue No. 401 Balance Date Explanation Ref. Debit Credit J1 J1 J1 No. 412 Sales Returns and Allowances Date Explanation Ref. Debit Credit Balance J1 Sales Discounts No. 414 Date Explanation Ref. Debit Credit Balance J1 No. 505 Cost of Goods Sold Date Explanation Ref. Debit Credit Credit Balance J1 > J1 J1 J1