Help Save & Exit Submit Prepare journal entries to record the following merchandising transactions of Parker's, which uses the perpetual inventory system and the gross method July 1 Purchased merchandise from Allen Company for $10,6e under credit terns of 1/15, n/3e, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Garcia Company for $3,200 under credit terms of 2/10, 1/6, FOB shipping point, invoice dated July 2 The merchandise had cost $1.920 July 3 Paid $1,045 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $3,800 for $6,300 cash July 9 Purchased merchandise from Clark Company for $4,5ee under credit terns of 2/15, 1/60, FOB destination, invoice dated July 9. July 11 Returned $900 of merchandise purchased on July 9 from Clark Company and debited its account payable for that amount July12 Received the balance due from Garcia Company for the invoice dated July 2, net of the discount July 16 Paid the balance due to Allen Company within the discount period. July 19 Sold merchandise that cost $4,100 to Perez Company for $5,800 under credit Terms of 2/15. n/60, FOB shipping point, invoice dated July 19 July 21 Gave a price reduction (allowance) of $1,200 to Perez Company for merchandise sold on July 19 and credited Perez's accounts receivable for that amount. July 24 Paid Clark Company the balance due, net of discount. July 30 Received the balance due from Perez Company for the invoice dated July 19, net of discount July 31 sold merchandise that cost $7,eee to Garcia Company for $11,600 under credit terms of 2/10, 1/60, FOB shipping point invoice dated July 31. 5 points Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Stripod Prepare a multiple-step income statement through the calculation of gross profit. Parker's Company Partial Income Statement For the Month Ended July 31, 2021 Sales Sales returns and allowances $ Freight-in Gross profit 3.200 0 1.045 (1,045) 2.155 0 2,155 Not income $ Quiz Help Save & EX Sub Impact on income Increase (decreases to Income (10,000) S 3,200 July 1) Purchased merchandise from Allon Company for $10,600 under credit terms of 1/15, 1/30, FOB shipping Decreases not income point, invoice dated July 1 July 2) Sold merchandise to Garcia Company for $3.200 under credit terms of 2/10,760, FOB shipping point, invoice Increases net income dated July 2 July 2) The cost of the merchandise sold to Garcia Company No impact on income was $1.920 July 3) Paid $1,045 cash for freight charges on the purchase Decreases net income of July 1 July 8) Sold merchandise for $6,300 cash Increases net income 0 (1,045) 6,300 (4,500) 900 July 8) The cost of the merchandise sold was $3,800 No impact on income July 9) Purchased merchandise from Clark Company for $4,500 under credit terms of 2/15, n60, FOB destination, Decreases not income invoice dated July 9 July 11) Received a $900 credit memorandum from Clark Company for the return of part of the merchandise increases net income purchased on July 9. July 12) Received the balance due from Garcia Company for Decreases net income the invoice dated July 2. net of the discount. July 16) Paid the balance due to Allen Company within the Increases not income discount period July 19) Sold merchandise to Perez Company for $5,800 ordinn CADhinn nint in (64) 108 Help Save (4,500) 900 (84) 106 5,800 $4,500 under credit terms of 2/15, V60, FOB destination, Decreases net income invoice dated July 9 July 11) Received a $900 credit memorandum from Clark Company for the return of part of the merchandise Increases not income purchased on July 9 July 12) Received the balance due from Garcia Company for the invoice dated July 2, net of the discount Decreases not income July 16) Paid the balance due to Allon Company within the discount period Increases net incomo July 19) Sold merchandise to Perez Company for $5,800 under credit terms of 2/15,1-60, FOB shipping point invoice Increases not income dated July 19 July 19) The cost of the merchandise sold to Perez Company No impact on income was $4,100 July 21) Issued a $1.200 credit memorandum to Perez Company for an allowance on goods sold on July 19. Decreases not income July 24) Paid Clark Company the balance due, net of Increases not income discount July 30) Received the balance due from Perez Company for Decreases net income the invoice dated July 19, net of discount July 31) Sold merchandise to Garcia Company for $11,600 under credit terms of 2/10, 1/60, FOB shipping point, invoice increases net income dated July 31 July 31) The cost of the merchandise sold to Garcia No impact on income Company was $7,000 Total gross profit 0 (1,200) 72 (92) 11,800 0 $ 10.477