1.8/3 Question 9 View Policies Show Attempt History Current Attempt in Progress Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winterss' ledger showed Cash of $8,000 and Common Stock of $8,000. May 1 Purchased merchandise on account from Black Wholesale Supply for $8,000, terms 1/10, n/30. 2 Sold merchandise on account for $4,400, terms 2/10,n/30. The cost of the merchandise sold was $3,300. 5 Received credit from Black Wholesale Supply for merchandise returned $200. 9 Received collections in full, less discounts, from customers billed on May 2. 10 Paid Black Wholesale Supply in full, less discount. 11 Purchased supplies for cash $900. 12 Purchased merchandise for cash $3,100. 15 Received $230 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise from Wilhelm Distributors for $2,500, terms 2/10, n/30. 19 Paid freight on May 17 purchase $250. 24 Sold merchandise for cash $5,500. The cost of the merchandise sold was $4,100. 25 Purchased merchandise from Clasps Inc. for $800, terms 3/10,n/30. 27 Paid Wilhelm Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $124. The returned merchandise had cost $90. 31 Sold merchandise on account for $1,280, terms n/30. The cost of the merchandise sold was $830. Cash 8000 5/10 7722 4312 5/11 900 5/1 Bal. 519 5/15 5/ 24 5/15 C 230 5/12 3100 5/24 5 5500 500 | 5/19 5/19 250 5/27 2450 124 5/31 Bal. Accounts Receivable 5/2 4400 5/31 Bal. 4400 Inventory Accounts Receivable 4400 4400 Inventory Supplies Supplies Accounts Payable Common Stock Sales Revenue Prepare an income statement through gross profit for the month of May 2022. (Round answers to 0 decimal places, e.g. 5,275.) WINTERS HARDWARE STORE Income Statement (Partial) For the Month Ended May 31, 2022 Sales Sales Revenue 11180 Less : Sales Returns and allowances Sales Returns and Allowances $C -124 i - 124 Sales Discounts -88 i 8042 Net Sales 10968 1400 Gross Profit 1526 eTextbook and Media - Your answer is partially correct. Calculate the profit margin and the gross profit rate. (Assume operating expenses were $1,400.) (Round answers to 1 decimal place, e.g. 15.5%.) Profit margin 13.02 Gross profit rate 25.29 % Taythook and Media 1.8/3 Question 9 View Policies Show Attempt History Current Attempt in Progress Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winterss' ledger showed Cash of $8,000 and Common Stock of $8,000. May 1 Purchased merchandise on account from Black Wholesale Supply for $8,000, terms 1/10, n/30. 2 Sold merchandise on account for $4,400, terms 2/10,n/30. The cost of the merchandise sold was $3,300. 5 Received credit from Black Wholesale Supply for merchandise returned $200. 9 Received collections in full, less discounts, from customers billed on May 2. 10 Paid Black Wholesale Supply in full, less discount. 11 Purchased supplies for cash $900. 12 Purchased merchandise for cash $3,100. 15 Received $230 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise from Wilhelm Distributors for $2,500, terms 2/10, n/30. 19 Paid freight on May 17 purchase $250. 24 Sold merchandise for cash $5,500. The cost of the merchandise sold was $4,100. 25 Purchased merchandise from Clasps Inc. for $800, terms 3/10,n/30. 27 Paid Wilhelm Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $124. The returned merchandise had cost $90. 31 Sold merchandise on account for $1,280, terms n/30. The cost of the merchandise sold was $830. Cash 8000 5/10 7722 4312 5/11 900 5/1 Bal. 519 5/15 5/ 24 5/15 C 230 5/12 3100 5/24 5 5500 500 | 5/19 5/19 250 5/27 2450 124 5/31 Bal. Accounts Receivable 5/2 4400 5/31 Bal. 4400 Inventory Accounts Receivable 4400 4400 Inventory Supplies Supplies Accounts Payable Common Stock Sales Revenue Prepare an income statement through gross profit for the month of May 2022. (Round answers to 0 decimal places, e.g. 5,275.) WINTERS HARDWARE STORE Income Statement (Partial) For the Month Ended May 31, 2022 Sales Sales Revenue 11180 Less : Sales Returns and allowances Sales Returns and Allowances $C -124 i - 124 Sales Discounts -88 i 8042 Net Sales 10968 1400 Gross Profit 1526 eTextbook and Media - Your answer is partially correct. Calculate the profit margin and the gross profit rate. (Assume operating expenses were $1,400.) (Round answers to 1 decimal place, e.g. 15.5%.) Profit margin 13.02 Gross profit rate 25.29 % Taythook and Media
