Sheridans Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Sheridans' ledger showed Cash of $8,800 and Common Stock of $8,800. May 1 Purchased merchandise on account from Black Wholesale Supply for $8,800, terms 1/10,n/30. 2 Sold merchandise on account for $5.200, terms 2/10,n/30. The cost of the merchandise sold was $4,100. 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 $3,800. 15 Received $230 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise on account from Wilhelm Distributors for $3,200, 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 on account 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 $108. The returned merchandise had cost $92. 31 Sold merchandise on account for $1,280, terms n/30. The cost of the merchandise sold was $860. SHERIDANS HARDWARE STORE Income Statement (Partial) Sheridans Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Sheridans' ledger showed Cash of $8,800 and Common Stock of $8,800. May 1 Purchased merchandise on account from Black Wholesale Supply for $8,800, terms 1/10,n/30. 2 Sold merchandise on account for $5.200, terms 2/10,n/30. The cost of the merchandise sold was $4,100. 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 $3,800. 15 Received $230 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise on account from Wilhelm Distributors for $3,200, 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 on account 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 $108. The returned merchandise had cost $92. 31 Sold merchandise on account for $1,280, terms n/30. The cost of the merchandise sold was $860. SHERIDANS HARDWARE STORE Income Statement (Partial)
