2 5 Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters' ledger showed Cash of $11.200 and Common Stock of $11.200. May 1 Purchased merchandise on account from Black Wholesale Supply for $7,550, terms 1/10, 1/30. Sold merchandise on account for $4,400, terms 2/10, 1/30. The cost of the merchandise sold was $3,300. Received credit from Black Wholesale Supply for merchandise returned $550. 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 $1.260. Purchased merchandise for cash $4,340. Received $322 refund for return of poor quality merchandise from supplier on qash purchase. 17 Purchased merchandise from Wilhelm Distributors for $2,800, terms 2/10,n/30. 19 Paid freight on May 17 purchase $350. Sold merchandise for cash $7700. The cost of the merchandise sold was $5,740. 25 Purchased merchandise from Clasps Inc. for $1,120, terms 3/10, 1/30 27 Paid Wilhelm Distributors in full, less discount 29 Made refunds to cash customers for returned merchandise $150. The returned merchandise had cost $98. Sold merchandise on account for $1.792, terms n/30. The cost of the merchandise sold was $1,162. 12 15 24 31 Journalize the transactions using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit May 1 Inventory 7550 Accounts Payable 7550 May 2 Accounts Receivable 4400 4400 Sales Revenue (To record credit sale) Cost of Goods Sold 3300 3300 Inventory (To record cost of merchandise sold) Accounts Payable Mays 550 550 Inventory 4012 ay 9 Cash 88 Sales Discounts Accounts Receivable 7800 May 10 Accounts Payable Post the transactions to T-accounts. Be sure to enter the beginning cash and common stock balances. (Post entries in the order of journal entries posted in part (a). Round answers to 0 decimal places, e.g. 5,275.) Cash 5/1 Bal 7550 5/10 7722 5/9 . 4312 5/11 1260 5/15 322 5/12 . 4340 5/24 7700 5/19 350 5/27 5/29 150 5/31 Accounts Receivable 5/2 4400 5/9 4400 5/31 1792 5/31 Bal + 6192 Inventory 5/1 7550 5/2 3300 5/12 550 5/5 4340 WINTERS HARDWARE STORE Income Statement (Partial) For the Year Ended May 31, 2017 Sales Sales Revenue 11302 Less : Sales Returns and Allowances 150 88 i Sales Discount 248 11064 Net Sales 10832 Cost of Goods Sold 232 Gross Profit Calculate the profit margin and the gross profit rate. (Assume operating expenses were $1.960.) (Round answers to 1 decimal place, e.g. 15.5%.) Profit margin Gross proftrate %