Eagle Hardware Store Ltd

Eagle Hardware Store Ltd. completed the following merchandising transactions in the month of May 2015. At the beginning of May, Eagle s ledger showed Cash $7,000; Accounts Receivable $1,500; Merchandise Inventory $3,500; Common Shares $8,000; and Retained Earnings $4,000. Eagle Hardware uses a perpetual inventory system. May 1 Purchased merchandise on account from Depot Wholesale Supply Ltd. for $5,800, terms 1/10, n/30, FOB shipping point. 3 Freight charges of $145 were paid by the appropriate party on the merchandise purchased on May 1. 4 Sold merchandise on account to Shep Ltd. for $3,500, terms 2/10, n/30, FOB destination. The cost of the merchandise was $2,100. 7 Freight charges of $90 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 Shep Ltd. 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 $2,000, 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 $6,500 cash. The cost of the merchandise was $3,900. 29 Paid a $100 cash re