GL0402 - Based on Problem 4-2A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Griffin's, which uses the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable--Brown) Aug. 1 Purchased merchandise from Brown Company for $10,500 under credit terms of 1/10, 1/30, POB destination, invoice dated August 1. Aug. 5 Sold merchandise to Perez Corp. for $6,700 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4,000. Aug. 8 Purchased merchandise from Garcia Corporation for $6,000 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. Aug. 9 Paid $725 cash for shipping charges related to the August 5 sale to Perez Corp. Aug. 10 Perez returned merchandise from the August 5 sale that had cost Griffin's $200 and was sold for $400. The merchandise was restored to inventory. Aug. 12 After negotiations with Garcia Corporation concerning problems with the purchases on August 8, Griffin's received a credit memorandum from Garcia granting a price reduction of $800 off the $6,000 of goods purchased. Aug. 14 At Brown's request, Griffin's paid $700 cash for freight charges on the August 1 purchase, reducing the amount owed to Brown. Aug. 15 Received balance due from Perez Corp. for the August 5 sale less the return on August 10. Aug. 18 Paid the amount due Garcia Corporation for the August 8 purchase less the price allowance from August 12. Aug. 19 Sold merchandise to Clark Co. for $4,100 under credit terms of n/10, TOB shipping point, invoice dated August 19. The merchandise had cost $2,050. Aug. 22 Clark requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Griffin's sent Clark a $500 credit memorandum toward the $4,100 invoice to resolve the issue. Aug. 29 Received Clark's cash payment for the amount due from the August 19 sale less the price allowance from August 22. Aug. 30 Paid Brown Company the amount due from the August 1 purchase. 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 payable will be updated based on your entries. View transaction list Journal entry worksheet Purchased merchandise from Brown Company for $10,500 under credit terms of 1/10, 1/30, FOB destination, invoice dated August 1. Note: Enter debits before credits Da Account Title Debit Credit Aug 01 Record entry Clear entry View general Journal View transaction list Journal entry worksheet > Perez returned merchandise from the August 5 sale that had sold for $400. Note: Enter debits before credits. Date Account Title Debit Credit Aug 10 Record entry Clear entry View general journal Journal entry worksheet The cost of the merchandise returned by Griffin's was $200. The merchandise was restored to inventory. Note: Enter debits before credits. Date Account Title Debit Credit Aug 10 Record entry Clear entry View general journal payable will be upualeu Daseu on your entries. View transaction list Journal entry worksheet Journal entry worksheet 1 10 11 12 13 14 15 16 At Brown's request, Griffin's paid $700 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron. Note: Enter debits before credits. Date Account Title Debit Credit Aug 14 Record entry Clear entry View general Journal View transaction list Journal entry worksheet 1 11 .... 9 12 13 14 16 15 19 Received balance due from Perez Corp. for the August 5 sale less the return on August 10. Note: Enter debits before credits. Date Account Title Debit Credit Aug 15 Record entry Clear entry View general Journal Journal entry worksheet Paid the amount due Garcia Corporation for the August 8 purchase less the price allowance from August 12. Note: Enter debits before credits. Account Title Debit Credit Date Aug 18 Record entry Clear entry View general Journal Sold merchandise to Clark Co. for $4,100 under credit terms of n/10, FOB shipping point, invoice dated August 19. Note: Enter debits before credits. Date Account Title Debit Credit Aug 19 Record entry Clear entry View general Journal Journal entry worksheet The cost of the merchandise sold merchandise to Clark was $2,050. Note: Enter debits before credits. Date Account Title Debit Credit Aug 19 Record entry Clear entry View general Journal Journal entry worksheet Clark requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Griffin's sent Clark a $500 credit memorandum toward the $4,100 invoice to resolve the issue. Note: Enter debits before credits. Account Title Debit Date Aug 22 Credit Record entry Clear entry View general journal Journal entry worksheet Received Clark's cash payment for the amount due from the August 19 sale less the price allowance from August 22. Note: Enter debits before credits. Date Account Title Debit Credit Aug 29 Record entry Clear entry View general Journal Requirement General Ledger > Journal entry worksheet Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Prepare a multiple-step income statement. Griffin's Company Income Statement For the Month Ended August 31, 2019 $ $ 0 0 Oo 0 Operating expenses: Net income Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income 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 negative values. Upon completion, compare the amount of income with the amount reported on the income statement. Impact on income Increase (decrease) to income Aug. 1) Purchased merchandise from Brown Company for $10,500 under credit terms of 1/10, 1/30, FOB destination, invoice dated August 1 Aug. 5) Sold merchandise to Perez Corp. for $6,700 under credit terms of 2/10,n/60, FOB destination, invoice dated August 5 Aug. 5) The merchandise sold to Perez had cost $4,000. Aug. 8) Purchased merchandise from Garcia Corporation for $6,000 under credit terms of 1/10,n/45, FOB shipping point, invoice dated August 8. Aug. 9) Paid $725 cash for shipping charges related to the August 5 sale to Perez Corp. Aug. 10) Perez returned merchandise from the August 5 sale that had sold for $400. Aug. 10) The cost of the merchandise returned by Griffin's was $200. The merchandise was restored to inventory Aug. 12) After negotiations with Garcia Corporation concerning problems with the purchases on August 8, Griffin's received a credit memorandum from Garcia granting a price reduction of $800 off the $6,000 of goods purchased was $200. The merchandise was restored to inventory. Aug. 12) After negotiations with Garcia Corporation concerning problems with the purchases on August 8, Griffin's received a credit memorandum from Garcia granting a price reduction of $800 off the $6,000 of goods purchased. Aug. 14) At Brown's request, Griffin's paid $700 cash for freight charges on the August 1 purchase, reducing the amount owed to Brown. Aug. 15) Received balance due from Perez Corp. for the August 5 sale less the return on August 10. Aug. 18) Paid the amount due Garcia Corporation for the August 8 purchase less the price allowance from August 12. Aug. 19) Sold merchandise to Clark Co. for $4,100 under credit terms of n/10, FOB shipping point, invoice dated August 19 Aug. 19) The cost of the merchandise sold merchandise to Clark was $2,050 Aug. 22) Clark requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Griffin's sent Clark a $500 credit memorandum toward the $4,100 invoice to resolve the issue. Aug. 29) Received Clark's cash payment for the amount due from the August 19 sale less the price allowance from August 22. Aug. 30) Paid Brown Company the amount due from the August 1 purchase Total income $ 0