GL04-01 - Based on Problem 4-1A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Taylor'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-Walker.) Jul. 1 Purchased merchandise from Walker Company for $8,600 under credit terms of 1/15, n/30, FOB shipping point, invoice dated uly 1 Jul. 2 Sold merchandise to Perry Co. for $2,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,320. Jul. 3 Paid $645 cash for freight charges on the purchase of July 1. Jul. 8 Sold merchandise that had cost $2,600 for $4, 300 cash Jul. 9 Purchased merchandise from Ryan Co. for $3,500 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9 Jul. 11 Received a $700 credit memorandum from Ryan Co. for the return of part of the merchandise purchased on July9 Jul. 12 Received the balance due from Perry Co. for the invoice dated July 2, net of the discount. Jul. 16 Paid the balance due to Walker Company within the discount period Jul, 19 Sold merchandise that cost $2,700 to Clinton Co. for $3,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. Jul. 21 Issued a $800 credit memorandum to Clinton Co. for an allowance on goods sold on July 19. Jul. 24 Paid Ryan Co. the balance due, net of discount Jul. 30 Received the balance due from Clinton Co. for the invoice dated July 19, net of discount Jul. 31 Sold merchandise that cost $5,800 to Perry Co. for $9,600 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Genera Trial Balance Receivables Ledger of Income Impact on Schedule of Schedule Payables General Requirement Journal Statement Income General Journal tab - Journaliz e 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 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