Heritage Furniture incurred the following transactions for the month of March. The company uses a perpetual inventory system. Mar. 1 2 5 6 7 8 9 9 12 13 14 16 20 27 29 30 Received $125,000 on account from a major customer. Paid a supplier an amount owing of $200,000, taking the full discount, terms 2/10, n/30. Purchased merchandise from a supplier, $300,000, terms 2/10, n/30, FOB destination. Recorded cash sales, $285,000. The cost of goods sold for these sales was $200,000. No returns were anticipated related to this sale. Returned scratched merchandise to the supplier from the March 5 purchase, $25,000. The appropriate company paid freight for the March 5 purchase, $7,500. Sold $200,000 of merchandise on account, terms n/30, FOB destination. The cost of goods sold was $140,000. Management estimated that sales returns will be 12% of sales. The appropriate company paid freight for the March 9 sale, $5,000. Ordered custom merchandise for a local designer totalling $50,000. Received $12,500 as an advance payment. Accepted returned merchandise from the sale on March 9, $20,000. The cost of the goods returned to inventory was $14,000. Paid for the merchandise purchased on March 5, net of merchandise returns on March 7. Paid salaries of $45,000. Recorded cash sales, $255,000. The cost of goods sold for these sales was $179,000. No returns were anticipated related to these sales. Paid salaries, $50,000. Received payment of merchandise sold on March 9, net of merchandise returns on March 13. Paid rent, $5,000. Accounting Cycle Review ACR5.1 (LO 2, 3, 4) (Record and post general, adjusting, and closing entries; prepare trial balances and financial statements.) Heritage Furniture Limited reports the following information for 11 months of the year in its February 28, 2024, trial balance. The company's year end is March 31. HERITAGE FURNITURE LIMITED Trial Balance February 28, 2024 Debit Credit Cash Accounts receivable Inventory Supplies Prepaid rent Equipment $ 65,000 350,000 2,750,000 7,500 5,000 145,000 Accumulated depreciation-equipment $ 29,000 Accounts payable Deferred revenue 1,550,000 35,000 Bank loan payable Common shares 450,000 200,000 Retained earnings 550,500 Dividends declared 50,000 Sales 5,307,400 Cost of goods sold 3,843,900 Advertising expense 75,000 Freight out 180,000 Office expense 26,000 Rent expense 55,000 Salaries expense 360,000 Travel expense 12,500 Utilities expense 20,000 Interest expense 27,000 Income tax expense 150,000 $8,121,900 $8,121,900