GL0401 (Algo) - Based on Problem 4-1A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Ryan'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-Wright) July 1 Purchased merchandise from Weight Company for $11,000 under credit terms of 1/15, n/30, po shipping point, invoice dated July 1. July 2 Sold merchandise to Lee Company for $3,400 under credit terms of 2/10, n/60, FOB shipping point, Invoice dated July 2. The merchandise had cost $2,040. July 3 Paid $1,125 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $4,000 for $6,700 cash. July 9 Purchased merchandise from Lane Company for $4,700 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $900 of merchandise purchased on July 9 from Lane Company and debited its account payable for that amount. July 12 Received the balance due from Lee Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Wright Company within the discount period. July 19 Sold merchandise that cost $4,300 to Martin Company for $6,200 under credit term of 2/15, n/60, VOB shipping point, invoice dated July 19. July 21 Gave a price reduction allowance) of 51,200 to Martin Company for merchandise Hold on July 19 and credited Martin's accounts receivable for that amount. July 24 Paid Lane company the balance due, net of discount. July 30 Received the balance due from Martin Company for the invoice dated July 19, net of discount. July told merchandise that cost $7,200 to Lee Company for $12,000 under credit terme of 2/10, 1/60, YOD shipping point, invoice dated July 31. Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries. View transaction list Journal entry worksheet Prey 1 of 1 Next 80 ga 23 $ 3 & 7 4 5 6 8 Che 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. Impact on income Increase (decrease) to Income July 1) Purchased merchandise from Wright Company for $11,000 under credit terms of 115, 1/30, FOB shipping point, invoice dated July 1 July 2) Sold merchandise to Lee Company for $3,400 under credit terms of 2/10, 1/60, FOB shipping point invoice duted July 2 July 2) The cost of the merchandise sold to Lee Company was $2,040 July 3) Paid $1,125 cash for freight charges on the purchase of July 1 July 8) Sold merchandise for $5,700 cash July 8) The cost of the merchandise sold was $4.000, July 9) Purchased merchandise from Lane Company for 54 700 under credit forms of 2/15, 1/60. FOB destination Invoice dated July 9. July 11) Received a $900 credit memorandum from Lane Company for the return of part of the merchandise purchased on July 9. July 12) Received the balance due from Lee Company for the invoice dated July 2. net of the discount July 16) Paid the balance due to Wright Company within the discount period Prey 1 of 1 Next DAG 80 D DO EVO A & 3 $ 4 % 5 6 7 8 9 0 July 12) Received the balance due from Lee Company for the invoice dated July 2, net of the discount. July 16) Paid the balance due to Wright Company within the discount period July 19) Sold merchandise to Martin Company for $6,200 under credit terms of 2/15, 1/60, FOB shipping point, invoice dated July 19. July 19) The cost of the merchandise sold to Martin Company was $4,300. July 21) Issued a $1.200 credit memorandum to Martin Company for an allowance on goods sold on July 19. July 24) Paid Lane Company the balance due, net of discount July 30) Received the balance due from Martin Company for the invoice dated July 19. net of discount. July 31) Sold merchandise to Lee Company for $12,000 under credit terms of 2/10, 1/60, FOB shipping point, invoice dated July 31. July 31) The cost of the merchandise sold to Lee Company was $7.200 Total gross profit Income Statement Impact on come Prey 1 of 1 Next 30 00 $ A 3 4 % 5 & 7 6 8 9 0