Problems: Set A P5.1A (LO 2, 3, 4, 6), AP Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters' ledger showed Cash of $8,000 and Common Stock of $8,000. \begin{tabular}{|r|l|} 29 & \begin{tabular}{l} Made refunds to cash customers for \\ returned merchandise $124. The returned \\ merchandise had cost $90. \end{tabular} \\ \hline 31 & \begin{tabular}{l} Sold merchandise on account for $1,280 \\ terms n/30 \\ sold was $830 \end{tabular} \\ \hline \end{tabular} 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 e beginning cash and common stock balances. c. Prepare an income statement through gross profit for the month of May 2022. d. Calculate the profit margin and the gross profit rate. (Assume operating expenses were $1,400. \begin{tabular}{|c|c|} \hline & \begin{tabular}{l} terms 2/10,n/30. The cost of the \\ merchandise sold was $3,300. \end{tabular} \\ \hline 5 & \begin{tabular}{l} Received credit from Black Wholesale \\ Supply for merchandise returned $200. \end{tabular} \\ \hline 9 & \begin{tabular}{l} Received collections in full, less discounts, \\ from customers billed on May 2 . \end{tabular} \\ \hline 10 & \begin{tabular}{l} Paid Black Wholesale Supply in full, less \\ discount. \end{tabular} \\ \hline 11 & Purchased supplies for cash $900. \\ \hline 12 & Purchased merchandise for cash $3,100. \\ \hline 15 & \begin{tabular}{l} Received $230 refund for return of poor- \\ quality merchandise from supplier on cash \\ purchase. \end{tabular} \\ \hline 17 & \begin{tabular}{l} Purchased merchandise on account from \\ Wilhelm Distributors for $2,500, terms \\ 2/10,n/30. \end{tabular} \\ \hline 19 & Paid freight on May 17 purchase $250. \\ \hline 24 & \begin{tabular}{l} Sold merchandise for cash $5,500. The \\ cost of the merchandise sold was $4,100. \end{tabular} \\ \hline 25 & \begin{tabular}{l} Purchased merchandise on account from \\ Clasps Inc, for $800, terms 3/10,n/30. \end{tabular} \\ \hline 27 & \begin{tabular}{l} Paid Wilhelm Distributors in full, less \\ discount. \end{tabular} \\ \hline \end{tabular}