The following transactions for Best Deal Tire, Co., occurred during May:

Requirements 1. Journalize the transactions on the books of Best Deal Tire, Co.
2. What was Best Deal Tire’s gross profit for the month of May?

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May 4 Purchased $5,400 of merchandise on account from Bargain Tire. Terms, 3/15, n/45, FOB shipping point. Bargain Tire prepaid the $125 shipping cost and added the amount to the invoice. 11 7 Purchased $375 of supplies on account from Office Maxx. Terms, 3/10, n/30, FOB destination. 9 Sold $950 (cost, $250) of merchandise on account to W. Furmick. Terms, 3/15, n/45, FOB destination. 13 15 Paid $25 freight charges to deliver goods to W. Furmick. Returned $600 of the merchandise purchased on May 4 and received a credit. Sold $900 (cost, $350) of merchandise to cash customers. 16 Paid for the supplies purchased on May 7. 18 Paid Bargain Tire the amount due from the May 4 purchase in full. 20 W. Furmick returned $175 (cost, $100) of merchandise from the May 9 sale. 22 Purchased $3,900 of inventory. Paid cash. 23 Received payment in full from W. Furmick for the May 9 sale.