Swifty corporation completed the following merchandising transaction in the month of May. At the beginning of May, the ledger of Swifty Corporation showed Cash of $5,000 and common Stock of $ 5,000.

May1. Purchased merchandise on account from Gray?s Wholesale Supply$4,100, items 2/10, n /30.

2. Sold merchandise on account $2,400, terms 1/10, n/30. The cost of the merchandise sold was $1,400.

5. Received Credit from Grays Wholesale Supply for merchandise returned $300.

9. Received collections in full, less discounts, from customers billed on sales of $2,400 on May 2.

10. Paid Gray's Wholesale Supply in full, less discount.

11. Purchased supplies for cash $300.

12. Purchased merchandise for cash $1,500.

15. Received refund for poor quality merchandise from supplier on cash purchase $200.

16. Received refund for poor quality merchandise from Amland Distributors $1,400, FOB Shipping point, terms 2/10, n/30.

19. Paid freight on May 17 purchase $100.

24. Sold merchandise for cash $3,300. The merchandise sold had a cost of $2,200.

25. Purchased merchandise on account from Horvath, Inc. $750, FOB destination, terms 2/10, n/30.

27. Paid Amland Distributors in full, less discount.

29. Made refunds to cash customers for defective merchandise $60. The returned merchandise had a fair value of $40.

31. Sold merchandise on account $1,500, terms n/30. The cost of the merchandise sold was $500.

Swifty Corporation?s chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No 311 Common Stock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.

Journal the transaction using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter "0" for the amounts. Record journal entries in the order resented in the problem.)

Entering the beginning cash and common stock balances and post the transactions. (Post entries in the order of journal entries presented in the previous questions.)

Prepare an income statement through gross profit for the month of May 2019.

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Date Account Titles and Explanation May 1 Inventory May 2: Accounts Receivable Net Sales (To record credit sale) Accounts Payable May 2: Cost of Goods Sold May 5: May 10: Inventory (To record cost of merchandise sold) May 9 Cash Sales Discounts Accounts Receivable Debit 4100 2400 1400 300 Credit 4100 2400 1400 300 (To record cash sale) (To record cost of merchandise sold) : • # (To record merchandise returned) (To record cost of merchandise returned) (To record credit sale) (To record cost of merchandise sold) 00 00 Cash Date 10000000 Accounts Date Explanation : Balance Receivable Ref. > 31 31 31 31 31 31 31 31 31 Debit Explanation Ref. Debit 31 31 Credit 000000000 Credit No. 101 Balance No. 112 Balance Date Inventory Date : : : Explanation Ref. Debit 31 31 31 Explanation Ref. Debit 31 31 31 J1 31 31 31 J1 31 31 J1 Credit Credit Balance No. 120 Balance Supplies Date Explanation Accounts Payable Date : : Common Stock Explanation Date Explanation : Balance Sales Revenue Date : : Explanation Ref. Debit J1 Ref. 31 J1 31 31 31 31 Ref. V Ref. J1 J1 J1 Debit Debit Debit Credit Credit Credit Credit No. 126 Balance No. 201 Balance No. 311 Balance No. 401 Balance Sales Returns and Allowances Date Explanation Ref. Debit 31 Sales Discounts Date 31 Explanation Ref. 31 Cost of Goods Sold Date Explanation Ref. 31 31 J1 31 Debit Debit Credit Credit Credit No. 412 Balance No. 414 Balance No. 505 Balance Swifty Corporation Income Statement (Partial) : : $ Date Account Titles and Explanation May 1 Inventory May 2: Accounts Receivable Net Sales (To record credit sale) Accounts Payable May 2: Cost of Goods Sold May 5: May 10: Inventory (To record cost of merchandise sold) May 9 Cash Sales Discounts Accounts Receivable Debit 4100 2400 1400 300 Credit 4100 2400 1400 300 (To record cash sale) (To record cost of merchandise sold) : • # (To record merchandise returned) (To record cost of merchandise returned) (To record credit sale) (To record cost of merchandise sold) 00 00 Cash Date 10000000 Accounts Date Explanation : Balance Receivable Ref. > 31 31 31 31 31 31 31 31 31 Debit Explanation Ref. Debit 31 31 Credit 000000000 Credit No. 101 Balance No. 112 Balance Date Inventory Date : : : Explanation Ref. Debit 31 31 31 Explanation Ref. Debit 31 31 31 J1 31 31 31 J1 31 31 J1 Credit Credit Balance No. 120 Balance Supplies Date Explanation Accounts Payable Date : : Common Stock Explanation Date Explanation : Balance Sales Revenue Date : : Explanation Ref. Debit J1 Ref. 31 J1 31 31 31 31 Ref. V Ref. J1 J1 J1 Debit Debit Debit Credit Credit Credit Credit No. 126 Balance No. 201 Balance No. 311 Balance No. 401 Balance Sales Returns and Allowances Date Explanation Ref. Debit 31 Sales Discounts Date 31 Explanation Ref. 31 Cost of Goods Sold Date Explanation Ref. 31 31 J1 31 Debit Debit Credit Credit Credit No. 412 Balance No. 414 Balance No. 505 Balance Swifty Corporation Income Statement (Partial) : : $

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