IvanhoeHardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger ofIvanhoeshowed Cash of $5,500, Inventory of $8,000and Owner's Capital of $13,500.

May 2Sold merchandise on account $1,800, terms1/10, n/30. The cost of the merchandise sold was $1,500.9Received collections in full, less discounts, from customers billed on sales of $1,800on May 2.24Sold merchandise for cash $3,200. The merchandise sold had a cost of $2,200.29Made refunds to cash customers for defective merchandise $80. The returned merchandise had a fair value of $40.31Sold merchandise on account $1,500terms n/30. The cost of the merchandise sold was $500.

IvanhoeHardware's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 301 Owner's Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.

Journalize the transactions using a perpetual inventory system. {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 V (To record credit sale) (To record cost of merchandise sold) (To record cash sale) (To record cost of merchandise sold) (To record merchandise returned) (To record cost of merchandise retumed) Cr \fEnter the beginning cash and capital balances and post the transactions. (Post entries in the order of journal entries presented in the previous part.) Cash No. 10 Date Explanation Ref. Debit Credit Balance v Balance 1/ v J1 v J1 v J1 Accounts Receivable No' 11 Date Explanation Ref. Debit Credit Balance v J1 v J1 v J1 Inventory No. 12 Date Explanation Ref. Debit Credit Balance v Balance 1/ v J1 v J1 v J1 v J1 Owner's Capital No. 30 Date Explanation Ref. Debit Credit Balance v Balance 1/ Sales Revenue No. 40 Date Explanation Ref. Debit Credit Balance v J1 V J1 J1 Sales Returns and Allowances No. 41 Date Explanation Ref. Debit Credit Balance J1 Sales Discounts No. 41 Date Explanation Ref. Debit Credit Balance J1 Cost of Goods Sold No. 50 Date Explanation Ref. Debit Credit Balance J1 J1 J1 J1Prepare an income statement through gross profit for the month of May 2022. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) IVANHOE HARDWARE STORE Income Statement (Partial) $ v $