P$5\mathrm{.}1($LO $2,\backslash (\backslash$underline$\{3\},\backslash$underline$\{4\},\backslash$underline$\{6\})\backslash ),$ AP Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters' ledger showed Cash of $\backslash$$$8,000$ and Common Stock of $\backslash$$$8,000.$

May $1$ Purchased merchandise on account from Black Wholesale Supply for $\backslash (\backslash$$ $8,000\backslash ),$ terms $\backslash (1/10,\backslash$mathrm$\{$n$\}/30\backslash ).$

$2$ Sold merchandise on account for $\backslash (\backslash$$ $4,400\backslash ),$ terms $\backslash (2/10,$ n $/30\backslash ).$ The cost of the merchandise sold was $\backslash (\backslash$$ $3,300\backslash ).$

$5$ Received credit from Black Wholesale Supply for merchandise returned $\backslash (\backslash$$ $200\backslash ).$

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

$10$ Paid Black Wholesale Supply in full, less discount.

$11$ Purchased supplies for cash $\backslash (\backslash$$ $900\backslash ).$

$12$ Purchased merchandise for cash $\backslash$$$3,100.$

$15$ Received $\backslash (\backslash$$ $230\backslash )$ refund for return of poor$-$quality merchandise from supplier on cash purchase.

$17$ Purchased merchandise on account from Wilhelm Distributors for $\backslash (\backslash$$ $2,500\backslash ),$ terms $\backslash (2/10,$ n $/30\backslash ).$

$19$ Paid freight on May $17$ purchase $\backslash (\backslash$$ $250\backslash ).$

$24$ Sold merchandise for cash $\backslash (\backslash$$ $5,500\backslash ).$ The cost of the merchandise sold was $\backslash (\backslash$$ $4,100\backslash ).$

$25$ Purchased merchandise on account from Clasps Inc. for $\backslash$$$800,$ terms $3/10,$ n$/30.$

$27$ Paid Wilhelm Distributors in full, less discount.

$29$ Made refunds to cash customers for returned merchandise $\backslash (\backslash$$ $92\backslash ).$ The returned merchandise had cost $\backslash (\backslash$$ $70\backslash ).$

$31$ Sold merchandise on account for $\backslash (\backslash$$ $1,280\backslash ),$ terms $\backslash ($ n $/30\backslash ).$ The cost of the merchandise sold was $\backslash (\backslash$$ $762\backslash ).$

Winters Hardware's chart of accounts includes Cash, Accounts Receivable, Inventory, Supplies, Accounts Payable, Common Stock, Sales Revenue, Sales Returns and Allowances, Sales Discounts, and Cost of Goods Sold.

Instructions

a$.$ Journalize the transactions using a perpetual inventory system.

b$.$ Post the transactions to T$-$accounts. Be sure to enter the beginning cash and common stock balances.

c$.$ Prepare an income statement through gross profit for the month of May $2025.$

d$.$ Calculate the profit margin and the gross profit rate. $($Assume operating expenses were $\backslash (\backslash$$ $1,408\backslash ).)$