GL0401 (Algo) - Based on Problem 4-1A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Knight'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--Hall.) July 1 Purchased merchandise from Hall Company for $10,200 under credit terms of 1/15, 1/30, po shipping point, invoice dated July 1. July 2 sold merchandise to walker Company for $3,000 under credit terms of 2/10, 1/60, TOB shipping point, Involco dated July 2. The merchandise had cost $1,800. July 3 Paid $965 cash for freight charges on the purchase of July 1. July 8 sold merchandise that had cost $3,500 for $5,900 cash July 9 Purchased merchandise from Brown Company for $4,300 under credit terms of 2/15, 1/60, FOB destination, invoice dated July 9. July 11 Returned $900 of merchandise purchased on July 9 from Brown Company and debited its account payable for that July 12 Received the balance due from Walker Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to all company within the discount period. July 19 sold merchandise that cost $3,800 to Wiloon Company for $5,400 under credit terms of 2/15, 1/60, POB shipping point, invoice dated July 19. July 21 Gave price reduction (allowance) of $1,100 to Wilson Company for merchandise sold on July 19 and credited Wilson's accounts receivable for that amount. July 24 Paid Brown Company the balance due, net of discount. July 30 Received the balance due fron Wilson Company for the invoice dated July 19, not of discount. July 31 Sold merchandise that cost $6,700 to Walker Company for $11,200 under credit terms of 2/10, 1/60, POB shipping point, invoice dated July 31. Amount. Saved July 17 BULO Lunan be that coBC , OVU tu WALBUM company LOL , under en tur UL 4/10, WOU, TUD point, invoice dated July 19. July 21 Gave a price reduction allowance) of $1,100 to Wilson Company for merchandise sold on July 19 and cre Wilson's accounts receivable for that amount. July 24 Paid Brown Company the balance due, net of discount. July 30 Received the balance due from Wilson Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $6,700 to Walker Company for $11,200 under credit terms of 2/10, n/60, FOB point, invoice dated July 31. Trial Balance General General Schedule of Schedule of Income Impact on Requirement Joum Ledger Receivables Payables Statement Income General Journal General Journal tab - Journalize the merchandising transactions. The General Ledger, trial balance and schedules of accounts receivable and accounts payable will be updated based on your entries. General Ledger tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. Schedule of Receivables tab - General Ledger sofware automates the balances for each of the customer's accounts. Schedule of Payables tab - General Ledger sofware automates the balances for each of the supplier's accounts. Income Statement tab - Prepare the income statement through the calculation of gross profit. Impact on Income tab - Indicate the impact each transaction had on net income. Requirement General Journal > Journalize the merchandising transactions. The General Ledger, trial balance, and schedules payable will be updated based on your entries. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 17 > Purchased merchandise from Hall Company for $10,200 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. Note: Enter debits before credits. Account Title Debit Credit Date July 01 + Record entry Clear entry View general Journal Tew transaction list Purchased merchandise from Hall Company for $10,200 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Walker Company for $3,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. 3 The cost of the merchandise sold to Walker Company was $1,800. 4 Paid $965 cash for freight charges on the purchase of July 1. 5 Sold merchandise for $5,900 cash. Note : = journal entry has been entered Record entry Clear entry Journalize the merchandising transactions. The General Ledger, trial balance, and schedules payable will be updated based on your entries. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 17 > Purchased merchandise from Hall Company for $10,200 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. Note: Enter debits before credits. Account Title Debit Credit Date July 01 + Record entry Clear entry View general Journal Tew transaction list Purchased merchandise from Hall Company for $10,200 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Walker Company for $3,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. 3 The cost of the merchandise sold to Walker Company was $1,800. 4 Paid $965 cash for freight charges on the purchase of July 1. 5 Sold merchandise for $5,900 cash. Note : = journal entry has been entered Record entry Clear entry