GL$0401($Algo$)-$ Based on Problem $4-1$A LO P$1,$ P$2$

Preparejournal entries to record the following merchandising transactions of Sanchez'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$-$Lee.$)$

July $1$ Purchased merchandise from Lee Company for $$9,$ foy under credit terms of $\frac{1}{15},\frac{n}{30},$ foB shipping point, invoice dated July $1.$

July $2$ sold merchandise to Brown Company for $$2,66$ under conedit terms of $\frac{2}{10},\frac{n}{60},$ foB shipping point, invoice dated July $2.$ The merchandise had cost $$1,569.$

July $3$ Paid $$845$ cash for freight charges on the punchase of July $1.$

July $8$ sold merchandise that had cost $$3,100$ for $$3,160$ cash.

July $9$ Purchased merchandise from Carter Company for $3,204$ under credit terms of $\frac{2}{15},\frac{n}{60},$ FOB destination, invoice dated July $9.$

July $11$ Returned $$800$ of nerchandise purchased on $J41y$ from Carter Company and debited its account payable for that amount.

July $12$ Received the balance due from Erown Company for the invoice dated July $2,$ net of the discount.

July $16$ Paid the balance due to Lee Company within the discount period.

july $19$ sold merchandise that cost $$3,260$ to Clark Company for $$4,600$ under credit terms of $\frac{2}{15},\frac{n}{60},$ foB shipping point, invoice dated July $19.$

July $21$ Gave a price reduction $($allowance$)$ of $$969$ to Clark Company for merchandise sold on July $19$ and credited Clark's accounts receivable for that anount.

Ju$1$y $24$ Paid Carter Company the balance due, net of discount.

$3u1y30$ Received the balance due from Clark Company for the invoice dated July $19,$ net of discount.

JuIy $31$ sold merchandise that cost $$6,260$ to Browl company for $$10,400$ under credit terms of $\frac{2}{10},\frac{7}{60},$ foB shipping point, invoice dated July $31.$

Requirement

General

Genera

Trial Balance

Schedule of

Schedule of

Income

Impact on

Receivables

Payables Statement

Income

Prepare a multiple$-$step income statement through the calculation of gross profit.

Sanchez's Company

Partial Income Statement

For the Month Ended July $31,2021$