Impact on income Increase (decrease) to income July 1) Purchased merchandise from Taylor Company for $10,000 under credit terms of 1/15, n/30 FOB shipping point, invoice dated July 1 July 2) Sold merchandise to Lane Co. for $2,900 under credit terms of 2/10, n/60, FOB shipping point invoice dated July 2 July 2) The cost of the merchandise sold to Lane Co was $1,740 July 3) Paid $925 cash for freight charges on the purchase of July 1 July 8) Sold merchandise for $5 700 cash July 8) The cost of the merchandise sold was $3,400 Mitchell's Company Partial Income Statement For the Month Ended July 31, 2017 Impact on income Increase (decrease) to income July 1) Purchased merchandise from Taylor Company for $10,000 under credit terms of 1/15, n/30 FOB shipping point, invoice dated July 1 July 2) Sold merchandise to Lane Co. for $2,900 under credit terms of 2/10, n/60, FOB shipping point invoice dated July 2 July 2) The cost of the merchandise sold to Lane Co was $1,740 July 3) Paid $925 cash for freight charges on the purchase of July 1 July 8) Sold merchandise for $5 700 cash July 8) The cost of the merchandise sold was $3,400 Mitchell's Company Partial Income Statement For the Month Ended July 31, 2017