Spare Parts was organized on May 1, 2011, and made its first purchase of merchandise on May 3. The irchase was for 1,000 units at a price of $10 per unit. On May 5, Spare Parts sold 600 of the units for $14 per unit to DeSoto Co. Terms of the sale were 2/10, n/60. a. On May 7, DeSoto returns 200 units because they did not fit the customer's needs. Spare Parts restores the units to its inventory. b. On May 8, DeSoto discovers that 50 units are damaged but are still of some use and, therefore, keeps the units. Spare Parts sends DeSoto a credit memorandum for $300 to compensate for the damage. C. On May 15, DeSoto discovers that (2 units are the wrong color. DeSoto keeps 43 of these units Spare Parts sends a $92 credit memorandum to compensate. DeSoto returns the remaining 29 units to Spare Parts. Spare Parts restores the 29 returned units to its inventory. On May 11, Smythe Co. accepts delivery of $30,000 of merchandise it purchases for resale from Hope Corporation. With the merchandise is an invoice dated May 11, with terms of 3/10, 1/90, FOB shipping point. The goods cost Hope $20,000. When the goods are delivered, Smythe pays $335 to Express Shipping for delivery charges on the merchandise. On May 12, Smythe returns $1,200 of goods to Hope, who receives them one day later and restores them to inventory. The returned goods had cost Hope $800. On May 20, Smythe mails a check to Hope Corporation for the amount owed. Hope receives it the following day. (Both Smythe and Hope use a perpetual inventory system.) 1. Prepare journal entries that Smythe Co. records for these transactions. (Omit the "S" sign in your response.)