ach journal entry is posted automatically to the general ledger. Think of the general ledger as sorting all of your journal ntries by account title. Click on any of the individual amounts to return to the underlying journal entry. No input required The trial balance is a listing of all account balances from the General Ledger as of a specific date. Click on any individual account balance to return to the General Ledger. The trial balance is only as accurate as the underlying journal entries. If the total debits do not equal the total credits, you have a journal entry that is out of balance. If you have an abnormal ending balance (indicated with brackets in the general ledger), you should review the journal entries that affected that account to ensure that the journal entries are correct. Prepare journal entries to record the following merchandising transactions of Walker's, which uses the perpetual inventory system and the gross method. (Hint it will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable-Thompson.) July 1 Purchased serchandise from Thompson Company for $7,200 under credit terms of 1/15, n/3e, Fob shipping point, invoice dated July 1. zuly 2 sold merchandise to Mitchell company for $1,5e0 under credit terms of 2/10,n/60, FOB shipping point, invoice dated July 2 . The merchandise had cost $900. July 3 Paid $365 cash for freight charges on the purchase of July 1. July o sold merchandise that had cost $1,70e for $2,900 cash. July 9 purchased nerchandise from Mannion Conpany for $2,800 under credit terms of 2/15, n/6e, Fos destination, involee dated July 9. July 11 Returned 560 of aerchandise purchased on July 9 froe Mannion Conpany and debited its account payable for that anount. July 12 Received the balance due fron Mitehell Coepany for the invoice dated July 2, net of the discount. July 16 pald the balance due to Thompson Company within the discount period. July 19 Sold merchandise that cost 51 , 70e to Sanchez Company for $2,400 under credit teras of 2/15. n/60, Fos shipping point, invoice dated july 19. July 21 Gave a price reduction (allowance) of 35e0 to Sanchez Coepany for merchandise sold on July 19 and credited Sanchez's accounts receivable for that anount. July 24 paid Mannion Company the balance due, net of discount. july 30 pecelved the balance due fron Sanchez Company for the invoice dated July 19, net of discount. 2uly 31 sold merchandise that cost $4,900 to Mitchell company for $8,200 under credit terms of 2/10, n/6e, Fo6 shipping point, involice dated july 31 . Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries. No input required Journal entry worksheet Purchased merchandise from Thompson Company for $7,200 under credit terms of 1/15,n/30,FOB shipping point, invoice dated July 1 . Note: Enter debits before credits. Prepare a multiple-step income statement through the calculation of gross profit
