Problem 5-5A Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2018. At the beginning of May, Piper Specialty Store's ledger showed Cash $6,800; Accounts Receivable $1,500; Inventory $3,300; Common Shares $8,400; and Retained Earnings $3,200. Piper Specialty Store uses a perpetual inventory system. Purchased merchandise on account from Depot Wholesale Supply Ltd. for $5,200, terms 1/10, n/30, FOB shipping point. May 1 Freight charges of $160 were paid by the appropriate party on the merchandise purchased on May 1 3 Sold merchandise on account to Yip Company for $3,300, terms 2/10, n/30, FOB destination. The cost of the merchandise was $2,100. 4 Freight charges of $80 were paid by the appropriate party on the May 4 sale 7 Received a $200 credit from Depot Wholesale Supply when merchandise was returned 8 Paid Depot Wholesale Supply in full 9 Purchased supplies for $400 cash 11 Received payment in full from Yip Company for merchandise sold on account on May 4 14 Collected $1,100 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30, with no sales discounts. 15 Purchased merchandise from Harlow Distributors Inc. for $2,100, terms n/30, FOB destination 18 Freight of $40 was paid by the appropriate party on the May 18 purchase of merchandise. 21 Sold merchandise to various customers for $7,100 cash. The cost of the merchandise was $4,000. 22 Paid a $100 cash refund to customers for returned merchandise. The cost of the returned merchandise was $60. It was restored to inventory. 29 A physical inventory count was taken and determined that there was $4,200 of inventory on hand. Prepare any adjustment required. 31 May 1 Bal 3300 May 4 2100 May 1 5200 May 8 200 May 3 May 9 160 May 18 2100 May 22 May 29 May 29 60 May 31 Bal. 4200 Supplies May 11 400 May 31 Bal. 4 400 Common Shares May 31 Bal Accounts Payable 5200 May 8 200 May 1 May 9 4950 May 18 2100 7300 May 31 Bal. 4 Sales Prepare a partial multiple-step income statement for the month ended May 31, through to gross profit Piper Specialty Store Ltd. Income Statement (Partial) Month Ended May 31, 2018 Sales revenues Less x Net sales Gross profit SHOW LIST OF ACCOUNTS