At the Beginning of June 2024, Martinez distributing a company ledger showed cash $18,000, merchandise inventory $5,900 and D. Martinez, capital 23,900. During the month of

June , the company had the following selected transactions:

June 1 , Purchased 9,100 of merchandise inventory from Sun supply Co. terms 1/15, n/30,FOB Destinations.

2. The correct company paid $240 cash for Freight Charges on the June 1 Purchase.

5. Sold Merchandise Inventory to moose Jaw retailers for 12,500 . the cost of the Merchandise was $,7,700 and the terms were 2/10,n/30, FOB destinations.

6. issued a $900 credit for merchandise returned by moose jaw retailers. the Merchandise originally cost $554 and was returned to inventory.

6. the correct company paid $280 freight on the June 5 sales

7. purchased $850 of supplies for Cash 10. Purchased $3,750 of merchandise inventory from fey Wholesalers,terms 2/10,n/30,FOB shipping point

10. The correct company paid $130 freight costs on the purchase from few Wholesalers

12. received $200 credit from the fey wholesalers from returned merchandise

14. paid Sun supply Co. the amount due

15. collected the balance owning from moose jaw Retailers

19. Sold Merchandise for 7,100 cash . the cost of this merchandise was 4,400 20. paid few wholesalers the balance owing from the June 10 purchase.

25. made a 550 cash refund to a cash customer for the merchandise returned . the returned Merchandise had a cost of $341. The merchandise was damaged and could not be resold

30. sold Merchandise to Bauer & company for $4200, terms n/30 , FOB shipping point . Martinez's cost for this Merchandise was $2,600

Required.1. Record the Transactions assuming Martinez uses a perpetual inventory system and the earnings approach.

2. Set up General ledger accounts for Merchandise inventory , sales , sales returns and allowances, sales discounts and cost of goods sold. Enter the beginning merchandise inventory balance, post the transactions and calculate the balances for each accounts. ( post entries in the order of jornal entries presented in the previous part.)

3.prepare a partial multiple step income statement , up to gross profit , for the month of june 2024.