Wildhorse Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Wildhorse showed Cash of $4,500 and Owner's Capital of $4,500. May 1 Purchased merchandise on account from Braun's Wholesale Supply for $4,100, terms 2/10, n/30. 2 Sold merchandise on account $2,200, terms 1/10, n/30. The cost of the merchandise sold was $1,300. 5 Received credit from Braun's Wholesale Supply for merchandise returned $300. 9 Received collections in full, less discounts, from customers billed on May 2. 10 Paid Braun's Wholesale Supply in full, less discount. 11 11 12 Purchased supplies for cash $400. Purchased merchandise for cash $1,500. 15 Received $100 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise on account from Valley Distributors for $1,400, terms 2/10, n/30,FOB shipping point. 17 19 Paid freight on May 17 purchase $120. 24 Sold merchandise for cash $3,400. The merchandise sold had a cost of $2,000. 25 Purchased merchandise on account from Lumley, Inc. for $550, terms 2/10, n/30. 27 Paid Valley Distributors in full, less discount. 29 31 Made refunds to cash customers for returned merchandise $70. The returned merchandisecost $40. Sold merchandise on account for $1,500 terms n/30. The cost of the merchandise sold was $500. Date > Explanation Ref. Debit Credit Balance Balance J1 J1 J1 J1 J1 J1 J1 J1 J1 Accounts Receivable Date Tavanta No. 112 Explanation Ref. Debit Credit Balance J1 J1 J1 Inventory No. 120 Date Explanation Ref. Debit Credit Balance J1 J1 J1 J1 J1 J1 J1 J1 1 J1 1 J1 J1 1 J1 Date Explanation Ref. Debit Credit Balance J1 Supplies Accounts Payable No. 201 Date Explanation Ref. Debit Credit Balance J1 > J1 J1 J1 J1 J1 Owner's Capital Date No. 301 Explanation Ref. Debit Credit Balance Balance Sales Revenue No. 401 Date Explanation Ref. Debit Credit Balance J1 J1 J1 Sales Returns and Allowances No. 412 Date Explanation Ref. Debit Credit Balance J1 Sales Discounts No. 414 Date Explanation Ref. Debit Credit Balance J1 No. 505 Explanation Ref. Debit Credit Balance Cost of Goods Sold Date J1 J1 J1 J1 1 Prepare a multiple-step income statement through gross profit for the month of May 2022. (Use the ledger balances from part b and assume that no adjustments are necessary.) (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) : WILDHORSE HARDWARE STORE Income Statement (Partial) +A +A $