GL0401 (Algo) - Based on Problem 4-1A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Gonzalez'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-King.) July 1 Purchased merchandise from King Company for $6,880 under credit terms of 1/15, 1/30, FB shippine point, invoice dated July 1. July 2 Sold merchandise to Wright Company for $1,300 under credit terms of 2/10, 1/6, FOB shippine point, Invoice dated July 2. The merchandise had cost $780. July 3 Paid $285 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost 51,500 for $2,500 cash. July 9 Purchased merchandise from Lee Company for $2,600 under credit terms of 2/15, 1/60, FOB destination, invoice dated July 9. July 11 Returned $500 of merchandise purchased on July 9 from Lee Company and debited its account payable for that amount July 12 Received the balance due from Wright Company for the invoice dated July 2, bet of the discount. July 16 Paid the balance due to King Company within the discount period. July 19 Sold merchandise that cost $1,400 to Griffin Company for $2,000 under credit terms of 2/15, 1/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction allowance) of $400 to Griffin Company for merchandise sold on July 19 and credited Griffin's accounts receivable for that amount. July 24 Paid Lee Company the balance due, net of discount July 30 Received the balance due from Griffin Company for the invoice dated July 19, net of discount July 31 Sold merchandise that cost $4,700 to right Company for $7,000 under Creait terms of 2/10, 1/60, FOB shipping point, invoice dated July 31. General General Requirement Schedule of Trial Balance Schedule of Income Impact on Joumal Ledger Receivables Payables Statement Income 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 Impact on Income tab. Indicate the impact each transaction had on net income. gross profit General Journal > 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 puyable will be updated based on your entries. View transaction fint Journal entry worksheet 1 2 3 4 5 6 7 17 Purchased merchandise from King Company for $6,500 under credit terms of 1/15, W30, FOB shipping point, Invoice dated July 1. Account Time 0 Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of account payable will be updated based on your entries. View transaction list Journal entry worksheet ho Purchased merchandise from Lee Company for $2,600 under credit terms of 2/15, 1/60, FOB destination, invoice dated July 9. Note: Enter debits before credits Date Account Title Debit Credit July 09 Journalize the merchandising transactions. The General Ledger, trial band schedules of a payable will be updated based on your entries. View transaction list Journal entry worksheet Sold merchandise to Griffin Company for $2,000 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. Note: Enter debits before credits. Date Account Title Debit Credit July 19 Doment Income Joumalize the merchandising transactions. The General Ledger, land schedules of accounts rec payable will be updated based on your entries. View transaction list Journal entry worksheet