Plum corporation began the month of may with $1,100,000 of current assets, a current ratio of 2.00: 1, and an acid-test ratio of 1.60: 1. during the month, it completed the following transactions (the company uses a perpetual inventory system). may 2 purchased $65,000 of merchandise inventory on credit. 8 sold merchandise inventory that cost $65,000 for $145,000 cash. 10 collected $29,000 cash on an account receivable. 15 paid $30,000 cash to settle an account payable. 17 wrote off a $5,000 bad debt against the allowance for doubtful accounts account. 22 declared a $1 per share cash dividend on its 66,000 shares of outstanding common stock. 26 paid the dividend declared on may 22. 27 borrowed $105,000 cash by giving the bank a 30-day, 10% note. 28 borrowed $115,000 cash by signing a long-term secured note. 29 used the $220,000 cash proceeds from the notes to buy new machinery.