create general journal and income statement

• 1

  Purchased merchandise from Taylor Company for $10,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1.

• 2

  Sold merchandise to Lane Co. for $2,900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2.

• 3

  The cost of the merchandise sold to Lane Co. was $1,740.

• 4

  Paid $925 cash for freight charges on the purchase of July 1.

• 5

  Sold merchandise for $5,700 cash.

• 6

  The cost of the merchandise sold was $3,400.

• 7

  Purchased merchandise from Cabela Co. for $4,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.

• 8

  Returned $800 of merchandise purchased on July 9 from Cabela Co. and debited its account payable for that amount.

• 9

  Received the balance due from Lane Co. for the invoice dated July 2, net of the discount.

• 10

  Paid the balance due to Taylor Company within the discount period.

• 11

  Sold merchandise to Walker Co. for $5,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19.

• 12

  The cost of the merchandise sold to Walker Co. was $3,600.

• 13

  Gave a price reduction (allowance) of $1,000 to Walker Co. for merchandise sold on July 19 and credited Walkers accounts receivable for that amount.

• 14

  Paid Cabela Co. the balance due, net of discount.

• 15

  Received the balance due from Walker Co. for the invoice dated July 19, net of discount.

• 16

  Sold merchandise to Lane Co. for $11,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.

• 17

  The cost of the merchandise sold to Lane Co. was $6,600.