GL04-01-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.) Jul. 1 Purchased merchandise from Wright Company for $11,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. Jul. 2 Sold merchandise to Lee Co. for$3,400 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $2,840 ul. 3 Paid $1,125 cash for freight charges on the purchase of July 1. Jul. 8 Sold merchandise that had cost $4,000 for $6,700 cash. Jul. 9 Purchased merchandise from Lane Co. for $4,700 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9 Jul. 11 Received a $9e credit memorandum from Lane Co. for the return of part of the merchandise purchased on July 9 Dul. 12 Received the balance due from Lee Co. for the invoice dated July 2, net of the discount. Jul. 16 Paid the balance due to Wright Company within the discount period. Dul. 19 Sold merchandise that cost $4, 300 to Martin Co. for $6,200 under credit terms of 2/15, n/60, FOB 1 shipping point, invoice dated July 19 Jul. 21 Issued a $1,20e credit memorandum to Martin Co. for an allowance on goods sold on July 19. Dul. 24 Paid Lane Co. the balance due, net of discount. Dul. 38 Received the balance due from Martin Co. for the invoice dated July 19, net of discount. Dul. 31 Sold merchandise that cost $7,200 to Lee Co. for $12,e00 under credit terms of 2/10, n/6e, FOB shipping point, invoice dated July 31. Schedule of Schedule of Income Impact on Receivables Payables StatementIncome GeneralTrial Balance Ledger RequirementJournal 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. 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. General Journal>
