1. Prepare journal entries to record the above transactions for the month of July 2021

2. Prepare Healthy Candys Income Statement for the month of July 2021 assuming a corporate tax of 10%

The following are the merchandising transactions for the month of July of Healthy Candy, which is located in Doha Festival City and applies the perpetual inventory system: July 1: Sold merchandise to Applelton Sweets in the USA for $760 cash. The exchange rate on that date was ($1 = QR 3.6). The merchandise had cost QR 1,500 July 5: Purchased merchandise from King Kandy in Qatar for QR 1,700 under credit terms of 3/10, n/30, FOB shipping point July 6: Sold merchandise to Qatar Academy for QR 4,500, under credit terms of 2/15, n/60, FOB destination. The merchandise had cost QR 2,300 July 10: Paid freight charges of QR 50 cash on the purchase of July 5 and QR 65 cash on the sale of July 6 July 11: Received returned goods from Qatar Academy of QR 1,000. The cost of the returned goods was QR 550. However, the goods were defective and had a scrap value of QR 200 July 15: Received the balance due from Qatar Academy, after excluding returns and discounts (if any) July 18: Sold merchandise to The Four Seasons Hotel Doha for QR 3,200 under credit terms of 2/10,n/30, FOB shipping point. The merchandise had cost QR 1,700 July 20: Paid the balance due to King Kandy, after excluding returns and discounts (if any) July 26: Received a notice that The Four Seasons Hotel Doha is closing down as a result of the pandemic and will not be able to pay for its July 18 purchase. The accountant of Healthy Candy decided to treat the amount owed as uncollectable. Assume that the company is using the direct write-off method July 30: Unpredictably received a QR 2,000 cash payment from The Four Seasons Hotel Doha