04 Prepare journal entries to record the following merchandising transactions of Perry's, which uses the perpetual inventory system, August 1 Purchased merchandise from Taylor Company for $12,900 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. August 5 Sold merchandise to Knight Corporation for $7,900 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4,700. August 8 Purchased merchandise from Mitchell Corporation for $6,480 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. August 9 Paid $725 cash for shipping charges related to the August 5 sale to Knight Corporation August 10 knight returned merchandise from the August 5 sale that had cost Perry's $200 and was sold for $400. The merchandise was restored to inventory. August 12 After negotiations with Mitchell Corporation concerning problems with the purchases on August 8, Perry's received a credit memorandum fron Mitchell granting a price reduction of $900 off the $6,480 of goods purchased. August 14 At Taylor's request, Perry's paid $400 cash for freight charges on the August 1 purchase, reducing the amount owed to Taylor. August 15 Received balance due fron Knight Corporation for the August 5 sale less the return on August 10. August 18 Paid the amount due Mitchell Corporation for the August 8 purchase less the price allowance from August 12. August 19 Sold merchandise to Mannion Company for $4,400 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $2,200. August 22 Mannion requested a price reduction on the August 19 sale baause the merchandise did not meet specifications. Perry's sent Mannion a $500 credit memorandum toward the $4,400 invoice to resolve the issue. August 29 Received Mannion's cash payment for the amount due from the August 19 sale less the price allowance from August 22. August 30 Paid Taylor Company the amount due from the August 1 purchase. Prepare a multiple-step income statement. Perry's Company Income Statement For the Month Ended August 31, 2021 $ 0 $ 0 0 0 0 0 0 Operating expenses: Net income Schedule of Payables Impact on Income