Martinez Hardware Store Inc. completed the following merchandising transactions in the month of May 2018. At the beginning of May, Martinezs ledger showed Cash of $7,900 and Common Shares of $7,900.

May 1		Purchased merchandise on account from Hilton Wholesale Supply for $7,900, terms 2/10, n/30.
2		Sold merchandise on account for $4,800, terms 3/10, n/30. The cost of the merchandise sold was $3,290.
5		Received credit from Hilton Wholesale Supply for merchandise returned $200.
9		Received collections in full, less discounts, from customers billed on May 2.
10		Paid Hilton Wholesale Supply in full, less discount.
11		Purchased supplies for cash $950.
12		Purchased merchandise for cash $2,750.
15		Received $240 refund for return of poor-quality merchandise from supplier on cash purchase.
17		Purchased merchandise from Northern Distributors for $2,500, terms 2/10, n/30.
19		Paid freight on May 17 purchase $280.
24		Sold merchandise for cash $5,430. The cost of the merchandise sold was $3,710.
25		Purchased merchandise from Toolware Inc. for $730, terms 3/10, n/30.
27		Paid Northern Distributors in full, less discount.
29		Made refunds to cash customers for returned merchandise $130. The returned merchandise was returned to inventory and had cost $90.
31		Sold merchandise on account for $1,390, terms n/30. The cost of the merchandise sold was $870.

Martinez Hardware uses a perpetual inventory system.

1. Record the above transactions.

2. Post the transactions to T accounts.

3. Prepare an income statement through gross profit for the month of May 2018.

4. Calculate the profit margin and the gross profit margin. (Assume operating expenses were $1,410. and income tax expense was $350.)