Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters ledger showed Cash of $8,800 and Common Stock of $8,800.

Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters' ledger showed Cash of $8,800 and Common Stock of $8,800. May 1 2 5 9 10 11 12 15 Purchased merchandise on account from Black Wholesale Supply for $8,500, terms 1/10, n/30. Sold merchandise on account for $5,000, terms 2/10,n/30. The cost of the merchandise sold was $3,750. Received credit from Black Wholesale Supply for merchandise returned $600. Received collections in full, less discounts, from customers billed on May 2. Paid Black Wholesale Supply in full, less discount. Purchased supplies for cash $990. Purchased merchandise for cash $3,410. Received $253 refund for return of poor-quality merchandise from supplier on cash purchase. Purchased merchandise from Wilhelm Distributors for $2,500, terms 2/10,n/30. Paid freight on May 17 purchase $275. Sold merchandise for cash $6,050. The cost of the merchandise sold was $4,510. Purchased merchandise from Clasps Inc. for $880, terms 3/10, n/30. Paid Wilhelm Distributors in full, less discount. Made refunds to cash customers for returned merchandise $135. The returned merchandise had cost $91. Sold merchandise on account for $1,408, terms n/30. The cost of the merchandise sold was $913. 17 19 24 25 27 29 31 Date Account Titles and Explanation Debit Credit May 1 Inventory 8500 Accounts Payable May 2 > > > > Toronto > > (Tecord payment for med merchandi) (Teodored ( od (Torced cont of good old on count) 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 decimal places, e.g. 5,275.) Cash V V WINTERS HARDWARE STORE Income Statement (Partial) S $ $ eTextbook and Media List of Accounts Calculate the profit margin and the gross profit rate. (Assume operating expenses were $1.540.) (Round answers to 1 decimal place, eg. 15.5%) Profit margin Gross profit rate 96