Question

First Choice Ltd. completed the following merchandising transactions in the month of May 2018. At the beginning of May, First Choice’s ledger showed Cash $7,400; Accounts Receivable $1,600; Inventory $3,500; Common Shares $8,600; and Retained Earnings $3,900. First Choice uses a perpetual inventory system.

ONLY NEED MAY 9 AND MAY 31

May	1		Purchased merchandise on account from Depot Wholesale Supply Ltd. for $6,000, terms 1/10, n/30, FOB shipping point.
	3		Freight charges of $140 were paid by the appropriate party on the merchandise purchased on May 1.
	4		Sold merchandise on account to Ry Company for $3,500, terms 2/10, n/30, FOB destination. The cost of the merchandise was $2,200.
	7		Freight charges of $110 were paid by the appropriate party on the May 4 sale.
	8		Received a $200 credit from Depot Wholesale Supply when merchandise was returned.
	9		Paid Depot Wholesale Supply in full.
	11		Purchased supplies for $400 cash.
	14		Received payment in full from Ry Company for merchandise sold on account on May 4.
	15		Collected $1,000 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30, with no sales discounts.
	18		Purchased merchandise from Harlow Distributors Inc. for $1,800, terms n/30, FOB destination.
	21		Freight of $50 was paid by the appropriate party on the May 18 purchase of merchandise.
	22		Sold merchandise to various customers for $5,900 cash. The cost of the merchandise was $3,700.
	29		Paid a $100 cash refund to customers for returned merchandise. The cost of the returned merchandise was $50. It was restored to inventory.
	31		A physical inventory count was taken and determined that there was $5,100 of inventory on hand. Prepare any adjustment required.

Answer 1