May Purchased merchandise on account from Hilton Wholesale Supply for $7,800, terms 2/10, n/30. 1 2 Sold merchandise on account for $4.700, terms 3/10, n/30. The cost of the merchandise sold was $3.330. 5 Received credit from Hilton Wholesale Supply for merchandise returned $300. 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 $910. 12 Purchased merchandise for cash $2,460. 15 Received $210 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 $220. 24 Sold merchandise for cash $5,280. The cost of the merchandise sold was $4,420. 25 27 22 29 Purchased merchandise from Toolware Inc. for $790, terms 3/10, n/30. Paid Northern Distributors in full, less discount. Made refunds to cash customers for returned merchandise $130. The returned merchandise was returned to inventory and had cost $80. Sold merchandise on account for $1,380, terms n/30. The cost of the merchandise sold was $890. Calculate the profit margin and the gross profit margin. (Assume operating expenses were $1,460. and income tax expense was $250.) (Round answers to 1 decimal place, e.g. 17.5%.) Profit margin 13 % Gross profit margin 27 %