Reference no: EM132628394
Question - 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 Purchased merchandise on account from Black Wholesale Supply for $7,900, terms 1/10, n/30.
May 2 Sold merchandise on account for $4,000, terms 2/10, n/30. The cost of the merchandise sold was $3,000.
May 5 Received credit from Black Wholesale Supply for merchandise returned $300.
May 9 Received collections in full, less discounts, from customers billed on May 2.
May 10 Paid Black Wholesale Supply in full, less discount.11Purchased supplies for cash $990.
May 12 Purchased merchandise for cash $3,410.
May 15 Received $253 refund for return of poor-quality merchandise from supplier on cash purchase.
May 17 Purchased merchandise from Wilhelm Distributors for $3,300, terms 2/10, n/30.19Paid freight on May 17 purchase $275.
May 24 Sold merchandise for cash $6,050. The cost of the merchandise sold was $4,510.
May 25 Purchased merchandise from Clasps Inc. for $880, terms 3/10, n/30.
May 27 Paid Wilhelm Distributors in full, less discount.
May 29 Made refunds to cash customers for returned merchandise $145. The returned merchandise had cost $98.
May 31 Sold merchandise on account for $1,408, terms n/30. The cost of the merchandise sold was $913.
Required - Calculate the profit margin and the gross profit rate.