Ch Prepare journal entries to record the following merchandising transactions of Taylor'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_Walker.) July 1. July 1 Purchased merchandise from Walker Company for $8,600 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 2 Sold merchandise to Perry Company for $2,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,320. July 3 Paid July 85 $645 cash for freight charges on the purchase of July 1. Sold merchandise that had cost $2,600 for $4,300 cash. July 9 Purchased merchandise from Ryan Company for $3,500 under credit terms of 2/15, 1/60, FOB destination, invoice dated July 9. July 11 Returned $700 of merchandise purchased on July 9 from Ryan Company and debited its account payable for that amount. July 12 Received the due from Perry Company for the invoice dated July 2, net of the discount. Paid the balance due to Walker Company within the discount period. July 19 merchandise that cost $2,700 to Clinton Company for $3,800 under credit terms of 2/15, 1/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $800 to Clinton Company for merchandise sold on July 19 and credited Clinton's accounts receivable for that amount, July 24 Paid Ryan Company the balance due, net of discount. July 30 Received the balance due from Clinton Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $5,800 to Perry Company for $9,600 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Requirement General Jour General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Prepare a multiple-step income statement through the calculation of gross profit. Prepare a multiple-step income statement through the calculation of gross profit. Taylor's Company Partial Income Statement For the Month Ended July 31, 2021 $ 0 $ 0 000: No journal entry required 0 0 101: Cash 106: Accounts receivable - Clinton 0 107: Accounts receivable - Walker $ 0 108: Accounts receivable - Perry of Payables Impact on Income > Prepare a multiple-step income statement through the calculation of gross profit. Taylor's Company Partial Income Statement For the Month Ended July 31, 2021 $ 0 $ 0 0 0 0 109: Accounts receivable - Ryan 120: Merchandise inventory 201: Accounts payable - Clinton 202: Accounts payable Walker 203: Accounts payable Perry 0 $ 0 of Payables Impact on Income> Prepare a multiple-step income statement through the calculation of gross profit. Taylor's Company Partial Income Statement For the Month Ended July 31, 2021 $ 0 $ 0 204: Accounts payable - Ryan 209: Salaries payable 0 0 0 226: Unearned fees 0 $ 307. Common stock 0 319: Dividends of Payables Impact on income > Prepare a multiple-step income statement through the calculation of gross profit. Taylor's Company Partial Income Statement For the Month Ended July 31, 2021 $ $ 0 0 $ 0 403: Sales 0 0 404: Sales returns and allowances 0 405: Sales discounts 0 600: Cost of goods sold 6A $ 0 602: Purchases of Payables Impact on Income > Prepare a multiple-step income statement through the calculation of gross profit. Taylor's Company Partial Income Statement For the Month Ended July 31, 2021 $ $ 0 603: Purchases returns and allowances 0 A 0 0 604: Purchases discounts 0 640: Rent expense 0 652: Freight-in $ 0 660: Delivery expense of Payables Impact on Income > a i Saved Prepare a multiple-step income statement through the calculation of gross profit. Taylor's Company Partial Income Statement For the Month Ended July 31, 2021 $ 0 EA $ 0 604: Purchases discounts 0 0 640: Rent expense 0 652: Freight-in 0 660: Delivery expense $ 0 901: Income summary Taylor's Company Partial Income Statement For the Month Ended July 31, 2021 EA 0 $ 0 0 0 0 Total current assets 0 $ LS 0 Total current liabilities Total plant assets of Payables Impact on Income > Total long-term liabilities Total equity Prepare a multiple step income statement through the calculation of gross profit. Taylor's Company Partial Income Statement For the Month Ended July 31, 2021 $ 0 $ 0 0 0 0 0 Net sales $ Gross profit of Payables Total operating expenses Impact on Income > Net income Net loss Prepare a multiple-step income statement through the calculation of gross profit. Taylor's Company Partial Income Statement For the Month Ended July 31, 2021 $ 0 $ 0 0 0 0 0 es $ 0 000: No journal entry required of Payables Impact on Income> 101: Cash 106: Accounts receivable - clinton 107: Accounts receivable - Walker Prepare a multiple-step income statement through the calculation of gross profit. Taylor's Company Partial Income Statement For the Month Ended July 31, 2021 $ 0 $ 0 0 0 0 0 $ 0 bf Payables Impact on Income Total current assets Total current liabilities Total plant assets Total long-term liabilities