Monty Hardware Store Inc. completed the following merchandising transactions in the month of May 2022. At...

  

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Monty Hardware Store Inc. completed the following merchandising transactions in the month of May 2022. At the beginning of May, Monty's ledger showed Cash of $7,800 and Common Shares of $7,800. May 1 2 5 9 10 11 12 15 17 19 24 25 27 29 31 Purchased merchandise on account from Hilton Wholesale Supply for $7,800, terms 2/10, n/30. Sold merchandise on account for $4,700, terms n/30. The cost of the merchandise sold was $3,330. Received credit from Hilton Wholesale Supply for merchandise returned $300. Received collections in full from customers billed on May 2. Paid Hilton Wholesale Supply in full, less discount. Purchased supplies for cash $910. Purchased merchandise for cash $2,460. Received $210 refund for return of poor-quality merchandise from supplier on cash purchase. Purchased merchandise from Northern Distributors for $2,500, terms 2/10, n/30. Paid freight on May 17 purchase $220. Sold merchandise for cash $5,300. The cost of the merchandise sold was $4,420. Purchased merchandise from Toolware Inc. for $790, terms 3/10, n/30. Paid Northern Distributors in full, less discount. Made refunds to cash customers for returned merchandise $130. The returned merchandise had cost $80. Sold merchandise on account for $1,100, terms n/30. The cost of the merchandise sold was $890. Monty Hardware uses a periodic inventory system and expects a return rate of 3% on all sales. A physical count of inventory indicated that there was $4,500 on hand on May 31. Prepare an statement of income through gross profit for the month of May 2022. Sales revenues Sales Less Cost of Goods Sold Net sales MONTY HARDWARE STORE INC. Statement of Income (Partial) Month Ended May 31, 2022 v Monty Hardware Store Inc. completed the following merchandising transactions in the month of May 2022. At the beginning of May, Monty's ledger showed Cash of $7,800 and Common Shares of $7,800. May 1 2 5 9 10 11 12 15 17 19 24 25 27 29 31 Purchased merchandise on account from Hilton Wholesale Supply for $7,800, terms 2/10, n/30. Sold merchandise on account for $4,700, terms n/30. The cost of the merchandise sold was $3,330. Received credit from Hilton Wholesale Supply for merchandise returned $300. Received collections in full from customers billed on May 2. Paid Hilton Wholesale Supply in full, less discount. Purchased supplies for cash $910. Purchased merchandise for cash $2,460. Received $210 refund for return of poor-quality merchandise from supplier on cash purchase. Purchased merchandise from Northern Distributors for $2,500, terms 2/10, n/30. Paid freight on May 17 purchase $220. Sold merchandise for cash $5,300. The cost of the merchandise sold was $4,420. Purchased merchandise from Toolware Inc. for $790, terms 3/10, n/30. Paid Northern Distributors in full, less discount. Made refunds to cash customers for returned merchandise $130. The returned merchandise had cost $80. Sold merchandise on account for $1,100, terms n/30. The cost of the merchandise sold was $890. Monty Hardware uses a periodic inventory system and expects a return rate of 3% on all sales. A physical count of inventory indicated that there was $4,500 on hand on May 31. Prepare an statement of income through gross profit for the month of May 2022. Sales revenues Sales Less Cost of Goods Sold Net sales MONTY HARDWARE STORE INC. Statement of Income (Partial) Month Ended May 31, 2022 v

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