For each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any. Input decreases to net income as minus sign. Upon completion, compare the gross profit with the amount reported on the partial income statement.

For each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any. Input decreases to net income as minus sign. Upon completion, compare the gross profit with the amount reported on the partial income statement. Prepare journal entries to record the following merchandising transactions of Garcia'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-Brown.) July 1 Purchased merchandise from Brown Company for $7,600 under credit terms of 1/15,n/30, F08 shipping point, invoice dated July 1. July 2 Sold merchandise to Turner Company for $1,7e0 under credit terms of 2/10,n/60, FOB shipping point, invoice dated July 2. The nerchandise had cost $1,020. July 3 Paid $445 cash for freight charges on the purchase of July 1. Juty 8 Sold merchandise that had cost $2,000 for $3,300 cash. July 9 Purchased merchandise from Hall Company for $3,000 under credit terms of 2/15,n/60, FOB destination, invoice dated July 9. July 11 Returned $600 of merchandise purchased on July 9 from Hall Company and debited its account payable for that anount. July 12 Received the balance due fron Turner Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Brown Company within the discount period. July 19 Sold merchandise that cost $2, ee to Carter Company for $2,800 under credit terms of 2/15,n/60, FOB shipping point, invoice dated Juty 19. July 21 Gave a price reduction (allowance) of s6ee to Carter Company for merchandise sold on July 19 and credited Carter's accounts receivable for that anount. July 24 Paid Hall Company the balance due, net of discount. July 30 Received the balance due fron Carter Company for the involce dated July 19, net of discount. Juty 31 Sold nerchandise that cost $5,200 to Turner Company for $8,600 under credit terms of 2/10, n/60, F08 shipping point, invoice dated July 31. For each transaction, indicate the impact each item had on income and the dolar amount of the change in income, if any. Input decreases to net income as minus sign. Upon completion, compare the gross profit with the amount reported on the partial income statement