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Problem 5-5A Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2018. At the beginning of May, Piper Specialty Stores ledger showed Cash $7,400; Accounts Receivable $1,600; Inventory $3,100; Common Shares $8,700; and Retained Earnings $3,400. Piper Specialty Store uses a perpetual inventory system. May 1 Purchased merchandise on account from Depot Wholesale Supply Ltd. for $6,200, 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 Yip Company for $3,100, terms 2/10, n/30, FOB destination. The cost of the merchandise was $2,100. 7 Freight charges of $70 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 Yip Company for merchandise sold on account on May 4. 15 Collected $1,100 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 $2,000, terms n/30, FOB destination. 21 Freight of $40 was paid by the appropriate party on the May 18 purchase of merchandise. 22 Sold merchandise to various customers for $7,200 cash. The cost of the merchandise was $3,900. 29 Paid a $100 cash refund to customers for returned merchandise. The cost of the returned merchandise was $60. It was restored to inventory. 31 A physical inventory count was taken and determined that there was $4,800 of inventory on hand. Prepare any adjustment required.

Record the May transactions. Set up T accounts, enter the opening balances, and post the transactions. Prepare a partial multiple-step income statement for the month ended May 31, through to gross profit. prepare the current assets section of the statement of financial position as at May 31

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