Question 2 Blossom Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Blossoms' ledger showed Cash of $7,000 and Common Stock of $7,000. May 1 Purchased merchandise on account from Black Wholesale Supply for $7,000, terms 1/10, n/30. 2 Sold merchandise on account for $3,400, terms 2/10, n/30. The cost of the merchandise sold was $2,300. 5 Received credit from Black Wholesale Supply for merchandise returned $200. 9 Received collections in full, less discounts, from customers billed on May 2. 10 Paid Black Wholesale Supply in full, less discount. 11 Purchased supplies for cash $900. 12 Purchased merchandise for cash $2,100. 15 Received $230 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise from Wilhelm Distributors for $1,500, terms 2/10, n/30. 19 Paid freight on May 17 purchase $250. 24 Sold merchandise for cash $5,500. The cost of the merchandise sold was $4,100. 25 Purchased merchandise from Clasps Inc. for $800, terms 3/10, n/30. 27 Paid Wilhelm Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $88. The returned merchandise had cost $80. 31 Sold merchandise on account for $1,280, terms n/30. The cost of the merchandise sold was $880. Journalize the transactions using a perpetual inventory system. (If no entry is required, select "No Entry" for the a presented in the problem.) Date Account Titles and Explanation Debit Credit (To record credit sale) (To record cost of merchandise sold) + (To record sales) (To record cost of merchandise sold) (To record cost of merchandise sold) (To record payment for returned merchandise) (To record cost of goods returned) (To record credit sale) (To record cost of goods sold on account) Post the transactions to T-accounts. Be sure to enter the beginning cash and common stock balances. (Post entries in the order of journal entries posted in part (a). Round answers to o decimal places, e.g. 5,275.) Cash + + . + + Accounts Receivable + . Inventory . . + + . Supplies + Accounts Payable . + + Common Stock + + Sales Revenue + + 4 . Sales Returns and Allowances + + Sales Discounts + + + Cost of Goods Sold + . SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare an income statement through gross profit for the month of May 2022. (Round answers to O decimal places, e.g. 5,275.) BLOSSOM HARDWARE STORE Income Statement (Partial) SHOW LIST OF ACCOUNTS LINK TO TEXT LI Calculate the profit margin and the gross profit rate. (Assume operating expenses were $1,500.) (Round answers to 1 decimal place, e.g. 15.5%.) Profit margin % Gross profit rate % Click if you would like to Show Work for this question: Open Show Work