prepare and income statement through the gross profit for the month of May 2020

Wildhorse Cocomoleted the following merchandising transactions in the month of May. At the beginning of May, the ledger of Wildhorse showed Cash of $5,000 and Common Stock of 55.000 May 1 2. S Purchased merchandise on account from Gray's Wholesale Supply $4,500,terms 2/10, 1/30 Sold merchandise on account $2.400 terms 1/10, 1/30. The cost of the merchandise sold was $1,000 Received credit from Gray's Wholesale Supply for merchandise returned $400. Received collections in full, less discounts from customers billed on sales of $2,400 on May 2. Paid Grays Wholesale Supply in full, less discount. Purchased supplies for cash $400. 9 10 11 12 Purchased merchandise for cash $1300 15 27 19 24 Received refund for poor quality merchandise from supplier on cash purchase $100 Purchased merchandise from Amland Distributors 1.200, FOB shipping point, terms 2/10, 1/30. Paid freight on May 17 purchase $120. Sold merchandise for cash $3,300 The merchandise sold had a cost of $2.000 Purchased merchandise on account from Horvath, Inc. 5750, FOB destination, terms 2/10./30. Paid Amland Distributors in tult, less discount Made refunds to cash customers for defective merchandise 560. The returned merchandise hadafair value of $40, 25 27 29 31 Sold merchandise on account $1.500 termsn/30. The cost of the merchandise sold was $500 ROWENT 29 Made refunds to cash customers for defective merchandise $60. The returned merchandise had a fair value of $40. Sold merchandise on account $1.500, terms 1/30. The cost of the merchandise sold was $500 31 Wildhorse Co's chart of accounts includes the following: No. 101 Cash No. 112 Accounts Receivable. No. 120 Inventory. No 126 Supplies. No 201 Accounts Payable. No. 311 Common Stock, No.401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 50S Cost of Goods Sold. Cred Debit S4SOO $4,500 $2,400 $2.400 $1.000 $1,000 $400 $400 $2,376 $24 $2.400 $4,100 $82 $4,018 $400 $400 Date Account Titles and Explanation May-01 Inventory Accounts payable (To record merchandise purchased on account) May 02. Accounts receivable Sales revenue To record credit sale) May-02 Cost of goods sold Inventory (To record cost of merchandise sold) May 05 Accounts payable Inventory (To record credit for merchandise returned May 09 Cash Sales discounts (1% $2,400) Accounts receivable To record collection on account) May-20 Accounts payable 154,500 - 5400) Inventory (2% $4,100) Cash Torec payment on account) May-11 Supplies Cash To record supplies purchased for cash) May 12 Inventory Cash (To record merchandise purchased for cash) May 15 Cash Inventory To record refund received on merchandise returned May-17 Inventory Accounts payable To record merchandise purchased on account) Continue, May-19 Inventory Cash To record freight paid for merchandise purchased) May-24 Cash Sales revenue To record cash sales May 24 Cost of goods sold Inventory To record cost of merchandise sold) May 25 Inventory Accounts payable [To record merchandise purchased on account) May-27 Accounts payable Inventory (2% x $1,200) $1,300 $1,300 $100 $100 $1,200 $1,200 5120 $120 $3,300 $3,300 $2,000 $2.000 $750 $750 $1,200 $24 $1,176 $60 $60 $40 $40 To record payment on account) May 29 Sales returns and allowances Cash To record refund given for merchandise returned) May 29 Inventory Cost of goods sold (To record cost of merchandise returned May-31 Accounts receivable Sales revenue To record credit sale) May-31 Cost of goods sold Inventory to record cost of merchandise sold) $1,500 $1.500 $500 $500 S uus Date May 1 (Bala.) May9 May.10 May 11 May 12 May 15 May 19 May.24 May.27 May.29 Cash Debit Credit Balance $ 5,000 2,376 $ 7,376 4,018 | $ 3,358 $ 400 $ 2,958 $ 1,300 $ 1,658 100 $ 1.758 120$ 1,638 3,300 $ 4,938 $ 1,176 $ 3,762 S 60 s 3,702 $ 3,702 S $ Date May 1 May 2 May 5 May. 10 May. 12 May. 15 May. 17 May. 19 May 24 May 25 May 27 May 29 May 31 Inventory Debit Credit S 4,500 $ $ 1,000 $ $ 400 $ $ 82 $ $ 1,300 $ $ 100S $ 1,200 $ $ 120 S $ 2,000 $ $ 750 $ $ 24 S 40 $ $ 500 $ $ Balance 4,500 3,500 3,100 3,018 4,318 4,218 5,418 5,538 3,538 4,288 4,264 4,304 3,804 3,804 $ $ Date May.11 Supplies Debit Credit $ 400 Date May 2 May.9 May 31 Accounts Receivable Debit Credit Balance $ 2,400 $ 2,400 $ 2,400 s $ 1,500 $ 1,500 $ 1,500 Balance $ 400 $ 400 I $ Date May. 1 Mays May.10 May.17 May 25 May.27 Accounts Payable Debit Credit Balance $ 4,500 $ 4,500 $ 400 $ 4.100 $ 4,100 $ $ 1,200 $ 1,200 $ 750 $ 1.950 $ 1,200 $ 750 $ 750 Date May.2 May.24 May 29 May.29 Cost of Goods Sold Debit Credit Balance $ 1,000 $ 1,000 $ 2,000 $ 3,000 $ 40$ 2,960 $ 500 $ 3,460 5 Common Stock Debit Credit Sales Revenue Debit Credit Balance $ 2,400S 2,400 $ 3,300 $ 5,700 $ 1,500 $ 7,200 Date May. 1 (Bala.) Date May 2 May.24 May 31 Balance $ 5,000 Date May9 Sales Discounts Debit Credit 24 Balance $ 24 $ 24 Date May 29 Sales Returns and Allowance Debit Credit Balance $ 60 $ 60 $ 60 $ Prepare an income statement through gross profit for the month of May 2020 Wildhorse Co. Income Statement (Partial) For the Month Ended May 21, 2020 Total Expenses Sales Revenge 15.300 Lest Sales Discounts Sales Returns and Allowances 60 Net Sales Cost of Goods Sold Gross Profit