GL0401 (Algo) - Based on Problem 4-1A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Lane'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-Perry.) July 1 Purchased merchandise from Perry Company for $7,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Carter Company for $1,400 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $840. July 3 Paid $325 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,600 for $2,700 cash. July 9 Purchased merchandise from Martin Company for $2,700 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $500 of merchandise purchased on July 9 from Martin Company and debited its account payable for that amount. July 12 Received the balance due from Carter Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Perry Company within the discount period. July 19 Sold merchandise that cost $1,500 to Allen Company for $2,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $400 to Allen Company for merchandise sold on July 19 and credited Allen's accounts receivable for that amount. July 24 Paid Martin Company the balance due, net of discount. July 30 Received the balance due from Allen Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $4,800 to Carter Company for $8,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31, Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries. July 19 Sold merchandise that cost $1,500 to Al dated July 19. July 21 Gave a price reduction (allowance) of $400 to Allen Comp receivable for that amount. July 24 Paid Martin Company the balance due, net of discount. July 30 Received the balance due from Allen Company for the invo July 31 Sold merchandise that cost $4,800 to Carter Company for invoice dated July 31. General General Schedule o Requirement Trial Balance Journal Ledger Receivable No input required Lane's Company Schedule of Accounts Payable Accounts payable - Allen Accounts payable - Perry Accounts payable - Carter $ 0 0 0 2.200 Accounts payable - Martin Total accounts payable $ 2.200 < Schedule of Receivables e heducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253 Check my work mode: This shows what is correct or in July 1) Purchased merchandise from Perry Company for $7,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2) Sold merchandise to Carter Company for $1,400 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2 July 2) The cost of the merchandise sold to Carter Company was $840. July 3) Paid $325 cash for freight charges on the purchase of July 1. July 8) Sold merchandise for $2,700 cash. July 8) The cost of the merchandise sold was $1,600. July 9) Purchased merchandise from Martin Company for $2,700 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11) Received a $500 credit memorandum from Martin Company for the return of part of the merchandise purchased on July 9. July 12) Received the balance due from Carter Company for the invoice dated July 2, net of the discount. July 16) Paid the balance due to Perry Company within the discount period. July 19) Sold merchandise to Allen Company for $2,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19 July 19) The cost of the merchandise sold to Allen Company was $1,500 July 21) Issued a $400 credit memorandum to Allen Company for an allowance on goods sold on July 19 July 24) Paid Martin Company the balance due, net of discount. July 30) Received the balance due from Allen Company for the invoice dated July 19, net of discount. July 31) Sold merchandise to Carter Company for $8.000 under credit terms of 2/10 n/60 FOB shipping point invoice dated July 31 July 31) The cost of the merchandise sold to Carter Company was $4,800. Total gross profit No impact on income Increases net income [$ 1,400 (840) Decreases net income No impact on income Increases net income 2.700 Decreases net income (1,600) No impact on income No impact on income Decreases net income No impact on income (28) Increases net income 2.200 Decreases net income (1,500) Decreases net income (400) No impact on income Decreases net income Increases net income 8,000 Decreases net income (4,800) $ 5.132 Income Statement Erey Merchandise inventory 7 July 09 Merchandise inventory Accounts payable - Martin 8 July 11 Accounts payable - Martin Merchandise inventory 9 July 12 Cash 10 10 July 16 Sales discounts Accounts receivable - Carter Accounts payable - Perry Cash Sales discounts 11 July 19 Accounts receivable - Allen 12 July 19 13 13 July 21 44 14 July 24 Sales Cost of goods sold Merchandise inventory Sales returns and allowances Accounts receivable - Allen Accounts payable - Martin Cash Merchandise inventory 000 00 140 30 30 00 999 2.700 1,600 2,700 500 500 1.372 28 1.400 7.000 O 6,930 70 2.200 2,200 1,500 1,500 400 400