GLO401 (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 $6,800 under credit terms of 1/15, 1/30, po shipping point, invoice dated July July 2 Sold merchandise to Wright Company for $1,300 under credit terms of 2/10, n/60, FOB shipping point, Invoice dated July 2. The merchandise had cost $780. July 3 Paid 5285 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,500 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 5500 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, net 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, FOS shipping point, invoice dated July 19. July 21 Gave price reduction allowance) of $40 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 fros Griffin Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost 54,700 to right Company for $7,500 under credit terms of 2/10, 1/60. Fod shipping point, Envoice dated July 31. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Each journal entry is posted automatically to the general ledger. Think of the general ledger as sorting all of your journal entries by account title. Click on any of the individual amounts to return to the underlying journal entry. General Ledger Account Cash Merchandise inventory Debit Credit No. Debit Credit No Date July 01 Balance 27,000 Date July 01 Balance 9,000 Common stock Debit Credit No. Date June 30 Balance 36,000 Show less Gonzalez's Company Trial Balance July 01, 2021 Account Title Credit on Debit 27.000 9,000 Cash Merchandise inventory Common stock Total 36.000 36.000 36.000 $ General Ledger Schedule of Receivables > invoice dated July 31. - cers or 1/10, 100, FOB shipping point, Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income No input required Dates: July 01 to: July 01 $ Gonzaler's Company Schedule of Accounts Receivable Accounts receivable-Griffin Accounts receivable - King Accounts receivable - Wright Accounts receivable - Lee 0 0 7.800 0 0 7 000 Total accounts receivable $ Requirement General Journal General Ledger Tral Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Prepare a multiple-step income statement through the calculation of gross profit, Gonzalez's Company Partial Income Statement For the Month Ended July 31, 2021 Schedule of Payables Impact on Income> 15 points Book Adi Print Roforences General Requirement General Schedule of Schedule of Income Journal Trial Balance impact on Ledger Receivables Payables Statement Income For each transaction, indicate the impact each item bad 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. Incroso Impact an income (decrease to income July 1) Purchased merchandise from King Company for $5.800 under Credit Terms of 1/15, n/30, FOB shipping point invoice dated July 1 July 2) Sold merchandise to Wright Company for $1,300 under Credit terms of 2/10, 1/50, FOB shipping point, invoice dated July 2 July 2) The cost of the merchandise sold to Wright Company was $780 July 3) Paid 5285 cash for freight charges on the purchase of July 1 July 8) Sold merchandise for $2.500 cash July 8) The cost of the merchandise sold was 51500 July 9) Purchased merchandise from tee Company for $2,000 under credit terms of 2/15. VO FOB destination invoice dated July July 11) Received a $500 credit memorandurn from Lee Company for the return of part of the merchandise purchased on July 9. July 12) Received the balance due from Wright Company for the invoice dated July 2, net of the discount, July 16) Paid the balance due to King Company within the discount period. July 19) Sold merchandise to Griffin Company for $2,000 under credit terms of 2/15, 1/60, FOB shipping point, invoice dated July 19. July 19) The cost of the merchandise sold to Griffin Company was $1.400. July 21) Issued a $400 credit memorandum to Griffin Company for an allowance on goods sold on July 19. 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 to Wright Company for $7,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31 July 31) The cost of the merchandise sold to Wright Company was $4,700 Total gross profit