Pharoah Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May. Pharoahs' ledger showed Cash of $7,500 and Common Stock of $7,500. May 1 2 5 Purchased merchandise on account from Black Wholesale Supply for $7.500, terms 1/10, 1/30. Sold merchandise on account for $3.900, terms 2/10,n/30. The cost of the merchandise sold was $2,800. Received credit from Black Wholesale Supply for merchandise returned $200. Received collections in full, less discounts, from customers billed on May 2. Paid Black Wholesale Supply in full, less discount 9 10 11 12 15 17 19 Purchased supplies for cash $900. Purchased merchandise for cash $2,600. Received $230 refund for return of poor quality merchandise from supplier on cash purchase. Purchased merchandise from Wilhelm Distributors for $2,000, terms 2/10,n/30. Paid freight on May 17 purchase $250. Sold merchandise for cash $5,500. The cost of the merchandise sold was $4,100. Purchased merchandise from Clasps Inc. for $800, terms 3/10,n/30. Paid Wilhelm Distributors in full less discount. Made refunds to cash customers for returned merchandise $118. The returned merchandise had cost $170. Sold merchandise on account for $1.280, terms n/30. The cost of the merchandise sold was $830. 24 25 27 29 31 Prepare an income statement through gross profit for the month of May 2022. (Round answers to decimal places, eg. 5,275.) PHAROAH HARDWARE STORE Income Statement (Partial) For the Month Ended May 31, 2022 Sales 10680 Sales Revenue Less - 118 Sales Returns and Allowances 78 Sales Discounts 10484 Net Sales 7560 Cost of Goods Sold 2924 Gross Profit Calculate the profit margin and the gross proftrate. (Assume operating expenses were $1,365.) (Round answers to 1 decimal place, eg. 15.5%) Profit margin % Gross profit rate e Textbook and Media