Stein Hardware Store completed these merchandising transactions in the month of May. At the beginning of May, Stein's ledger showed Cash of $9,055 and Common Stock of $9,055. May 1 Purchased merchandise on account from Hilton Wholesale Supply $9,400, terms 2/10, n/30. 2 Sold merchandise on account $5,500, terms 3/10, n/30. The cost of the merchandise sold was $3,735. 5 Received credit from Hilton Wholesale Supply for merchandise returned $500. 9 Received collections in full, less discounts, from customers billed on on May 2. 10 Paid Hilton Wholesale Supply in full, less discount. 11 Purchased supplies for cash $1,019. 12 Purchased merchandise for cash $3,056. 15 Received $260 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise from Northern Distributors $3,200, terms 2/10, n/30. 19 Paid freight on May 17 purchase $283. 24 Sold merchandise for cash $6,112. The cost of the merchandise sold was $4,550. 25 Purchased merchandise from Toolware Inc. for $906, terms 3/10, n/30. 27 Paid Northern Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $141. The returned merchandise had cost $102. 31 Sold merchandise on account $1,449, terms n/30. The cost of the merchandise sold was $939. Journalize the transactions using a perpetual inventory system. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Date Account/Description Debit Credit May 1 Sales DiscountsCashCommon StockSales Returns and AllowancesMerchandise InventorySalesCost of Goods SoldSuppliesAccounts ReceivableAccounts Payable CashCost of Goods SoldSalesAccounts PayableMerchandise InventorySales Returns and AllowancesAccounts ReceivableSales DiscountsSuppliesCommon Stock May 2 Merchandise InventorySales DiscountsAccounts ReceivableSuppliesAccounts PayableCost of Goods SoldSalesCommon StockSales Returns and AllowancesCash Merchandise InventorySales Returns and AllowancesAccounts PayableCost of Goods SoldCommon StockSales DiscountsSuppliesSalesCashAccounts Receivable (To record the sale.) Sales DiscountsSuppliesMerchandise InventoryCashCommon StockSales Returns and AllowancesSalesCost of Goods SoldAccounts ReceivableAccounts Payable SalesSales Returns and AllowancesSales DiscountsCost of Goods SoldSuppliesMerchandise InventoryCashAccounts ReceivableAccounts PayableCommon Stock (To record the cost of inventory sold.) May 5 Accounts ReceivableSales DiscountsSuppliesMerchandise InventoryAccounts PayableCost of Goods SoldCashCommon StockSalesSales Returns and Allowances CashSuppliesMerchandise InventoryAccounts ReceivableAccounts PayableCommon StockSalesSales Returns and AllowancesSales DiscountsCost of Goods Sold May 9 Accounts PayableSalesCommon StockSales Returns and AllowancesSales DiscountsCost of Goods SoldSuppliesCashAccounts ReceivableMerchandise Inventory Sales Returns and AllowancesAccounts ReceivableCommon StockAccounts PayableSalesSuppliesCost of Goods SoldSales DiscountsMerchandise InventoryCash SuppliesSales DiscountsAccounts ReceivableCost of Goods SoldAccounts PayableCashMerchandise InventoryCommon StockSalesSales Returns and Allowances May 10 Merchandise InventoryCommon StockSales DiscountsSuppliesAccounts PayableCost of Goods SoldCashSalesAccounts ReceivableSales Returns and Allowances Sales Returns and AllowancesAccounts ReceivableCost of Goods SoldMerchandise InventorySales DiscountsAccounts PayableCommon StockSalesSuppliesCash Sales DiscountsAccounts PayableCommon StockAccounts ReceivableMerchandise InventorySalesCashSales Returns and AllowancesCost of Goods SoldSupplies May 11 CashSuppliesSales Returns and AllowancesSales DiscountsCost of Goods SoldAccounts ReceivableMerchandise InventoryAccounts PayableCommon StockSales Cost of Goods SoldCashSales Returns and AllowancesSales DiscountsSuppliesAccounts ReceivableAccounts PayableMerchandise InventoryCommon StockSales May 12 Sales Returns and AllowancesAccounts PayableSalesMerchandise InventoryCashAccounts ReceivableSales DiscountsCost of Goods SoldCommon StockSupplies Sales DiscountsAccounts PayableMerchandise InventoryCost of Goods SoldSuppliesCommon StockCashSalesSales Returns and AllowancesAccounts Receivable May 15 CashMerchandise InventoryCommon StockSales Returns and AllowancesAccounts ReceivableCost of Goods SoldAccounts PayableSalesSales DiscountsSupplies Common StockSalesAccounts PayableSales Returns and AllowancesSales DiscountsCost of Goods SoldSuppliesMerchandise InventoryCashAccounts Receivable May 17 Merchandise InventorySalesSales DiscountsAccounts PayableCashCost of Goods SoldSales Returns and AllowancesSuppliesCommon StockAccounts Receivable Merchandise InventoryCost of Goods SoldAccounts PayableCashSalesCommon StockAccounts ReceivableSales Returns and AllowancesSales DiscountsSupplies May 19 CashAccounts PayableCommon StockSales Returns and AllowancesSuppliesSales DiscountsAccounts ReceivableCost of Goods SoldSalesMerchandise Inventory Accounts PayableSalesSales DiscountsCashCost of Goods SoldSuppliesSales Returns and AllowancesMerchandise InventoryAccounts ReceivableCommon Stock May 24 Merchandise InventoryAccounts ReceivableAccounts PayableCommon StockSales DiscountsSalesSales Returns and AllowancesCost of Goods SoldSuppliesCash CashSales Returns and AllowancesAccounts ReceivableCommon StockMerchandise InventorySales DiscountsAccounts PayableCost of Goods SoldSuppliesSales (To record the sale.) Sales Returns and AllowancesCost of Goods SoldSuppliesCommon StockCashSales DiscountsAccounts ReceivableSalesAccounts PayableMerchandise Inventory SuppliesSales Returns and AllowancesSales DiscountsAccounts PayableCommon StockAccounts ReceivableCost of Goods SoldSalesMerchandise InventoryCash (To record the cost of inventory.) May 25 Accounts ReceivableMerchandise InventoryAccounts PayableCashSalesCommon StockSales Returns and AllowancesSales DiscountsCost of Goods SoldSupplies Common StockSales DiscountsCost of Goods SoldSuppliesSalesSales Returns and AllowancesAccounts PayableMerchandise InventoryCashAccounts Receivable May 27 Sales Returns and AllowancesMerchandise InventorySalesCashSales DiscountsAccounts PayableCost of Goods SoldAccounts ReceivableCommon StockSupplies Merchandise InventorySales Returns and AllowancesAccounts ReceivableSales DiscountsSalesCommon StockCost of Goods SoldAccounts PayableSuppliesCash Accounts ReceivableAccounts PayableCommon StockSales DiscountsSalesSales Returns and AllowancesCost of Goods SoldSuppliesCashMerchandise Inventory May 29 CashAccounts PayableSuppliesAccounts ReceivableSalesCommon StockSales DiscountsCost of Goods SoldSales Returns and AllowancesMerchandise Inventory SuppliesCashMerchandise InventoryAccounts ReceivableAccounts PayableCommon StockSalesSales Returns and AllowancesSales DiscountsCost of Goods Sold (To record refund of cash.) SuppliesAccounts PayableSalesSales Returns and AllowancesSales DiscountsCost of Goods SoldCommon StockAccounts ReceivableMerchandise InventoryCash Cost of Goods SoldAccounts PayableCommon StockSales Returns and AllowancesSalesSales DiscountsAccounts ReceivableSuppliesMerchandise InventoryCash (To record return of inventory.) May 31 Cost of Goods SoldSuppliesCashMerchandise InventoryAccounts ReceivableCommon StockAccounts PayableSalesSales Returns and AllowancesSales Discounts SalesSales DiscountsCost of Goods SoldSuppliesMerchandise InventoryCashAccounts ReceivableCommon StockAccounts PayableSales Returns and Allowances (To record the sale.) Sales DiscountsAccounts ReceivableSuppliesCost of Goods SoldSales Returns and AllowancesCommon StockMerchandise InventoryCashSalesAccounts Payable SuppliesSales DiscountsCost of Goods SoldMerchandise InventorySales Returns and AllowancesCommon StockCashSalesAccounts ReceivableAccounts Payable (To record the cost of inventory.) Post the transactions to T accounts. Be sure to enter the beginning cash and common stock balances. Then complete the income statement through gross profit for the month of May 2010 below. (For multiple accounts, list from largest to smallest amounts, e.g. 10, 5, 2.) STEIN HARDWARE STORE Income Statement (Partial) May 31, 2010For the month ended May 31, 2010 Sales revenues Cost of Goods SoldSuppliesCashAccounts receivableSalesMerchandise inventorySales returns and allowancesSales discounts $ Less: SalesMerchandise inventoryAccounts PayableSales discountsSales returns and allowancesSuppliesCost of Goods Sold $ Sales discountsSalesCost of Goods SoldSales returns and allowancesSuppliesMerchandise inventoryAccounts Payable Net Sales SuppliesSales discountsSalesAccounts payableCashMerchandise inventoryCost of Goods SoldSales returns and allowances Gross profit $ Calculate the profit margin ratio and the gross profit rate. (Assume operating expenses were $1,585.) (Round answer to 2 decimal places, e.g. 0.25.) Profit margin ratio Gross profit rate