Ch GL0401 - Based on Problem 4-1A LO P1, P2 Jul. Jul. Jul. Jul Prepare journal entries to record the following merchandising transactions of King'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-Carter) 1 Purchased merchandise from Carter Company for $11,200 under credit torme of 1/16, 1/30, por shipping point, invoice dated July 1. 2 Sold merchandise to Martin Co. for $3,500 under credit terms of 2/10, 1/60, FOB shipping point, invoice dated July 2. The merchandise had cont $2.100. 3 Paid $1,165 cash for freight charges on the purchase of July 1. Sold merchandise that had cost $4,100 for $6,900 cash. 9 Purchased merchandise from Walker Co. for $4,600 under credit terms of 2/15, 1/60, on destination, invoice dated July 9. Jul. 11 Returned $1,000 of merchandise purchased on July 9 from Walker Co. and debited its account payable for that Jul. 12 Received the balance due from Martin Co. for the invoice dated July 2, net of the discount. Jul. 16 Paid the balance due to Carter Company within the discount period. Jul 19 sold merchandise that cost $4,500 to Ryan Co. for $6,400 under credit terms of 2/15, n/60, TOB shipping point, invoice dated July 19. Jul. 21 Gave a price reduction (allowance) of $1,300 to Ryan Co. for merchandise sold on July 19 and credited Ryan's accounts receivable for that amount. Jul. 24 Paid Walker Co. the balance due, net of discount. Jul. 30 Seceived the balance due from Ryan Co. for the invoice dated July 19, net of discount. Jal. 31 Sold merchandise that cost $7,300 to Martin Co. for $12,200 under credit terns of 2/10, 1/60. TOB shipping point, Invoice dated July 31. amount. King's Company Partial Income Statement For the Month Ended July 31, 2019 $ $ 0 $ 0 0 0 0 0 o $ $ 0 increase Impact on income (decrease) to income July 1) Purchased merchandise from Carter Company for $11,200 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2) Sold merchandise to Martin Co. for $3,500 under credit terms of 2/10,n/60, FOB shipping point, invoice dated July 2 July 2) The cost of the merchandise sold to Martin Co. was $2,100 July 3) Paid $1,165 cash for freight charges on the purchase of July 1. July 8) Sold merchandise for $6,900 cash. 000: Increases net income 000: Decreases net income 000: No impact on income July 8) The cost of the merchandise sold was $4.100. July 9) Purchased merchandise from Walker Co. for $4,800 under credit terms of 2/15, 1/60, FOB destination, invoice dated July 9. July 11) Received a $1,000 credit memorandum from Walker Co for the return of part of the merchandise purchased on July 9. July 12) Received the balance due from Martin Co. for the invoice dated July 2, net of the discount July 16) Paid the balance due to Carter Company within the discount period July 19) Sold merchandise to Ryan Co. for $6,400 under credit terms of 2/15, 1/60, FOB shipping point, invoice dated July 19. July 19) The cost of the merchandise sold to Ryan Co. was $4,500. July 21) Issued a $1,300 credit memorandum to Ryan Co, for an allowance on goods sold on July 19. July 24) Pald Walker Co the balance due, net of discount. July 30) Received the balance due from Ryan Co. for the invoice dated July 19. net of discount. Co. for the return of part of the merchandise purchased on July 9. July 12) Received the balance due from Martin Co. for the invoice dated July 2, net of the discount. July 16) Paid the balance due to Carter Company within the discount period. July 19) Sold merchandise to Ryan Co. for $6,400 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 19) The cost of the merchandise sold to Ryan Co. was $4,500. July 21) Issued a $1,300 credit memorandum to Ryan Co, for an allowance on goods sold on July 19. July 24) Paid Walker Co, the balance due, net of discount July 30) Received the balance due from Ryan Co. for the invoice dated July 19, net of discount July 31) Sold merchandise to Martin Co, for $12,200 under credit terms of 2/10,n/60, FOB shipping point, invoice dated July 31. July 31) The cost of the merchandise sold to Martin Co. was $7,300. Total gross profit $ 0