income statement and impact on income statement

July purchased merchandise fron King Company for $6,80e under credit terms of 1/15, n/38, FOB shipping point, invoice dated July July 2 soid merchandise to wright Company for $1,30 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $78e. auly Paid $285 cash for freight charges on the purchase of July 1. buly 3 Sold merchandise that had cost $i, soe for $2,500 cash. auly 9 Purchased merchandise from Lee company for $2,6ee under credit terms of 2/15, 1/68, FOB destination, Invoice dated July 9. Duly 11 Returned sses of merchandise purchased on July 9 from Lee Company and debited its account payable for that amount. July12 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,eee under credit terms of 2/15, n/60, FOB Shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $400 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 from Griffin company for the invoice dated July 19, net of discount. July 31 sold merchandise that cost $4,7ee to wright company for $7,8ee under credit terns of 2/18, 1/60, Fee shipping point invoice dated July 31. For each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any. Decreases in net income should be entered with a minus sign. Upon completion, compare the gross profit with the amount reported on the partial income statement. 8 points Impact on income Increase (decrease to income Skipped Print July 1) Purchased merchandise from King Company for 56 800 under credil terms of 1/15, 130, FOB shipping point, invoice dated July 1 July 2) Sold merchandise to Wright Company for $1,300 under credit terms of 2/10, 1/60, FOB shipping point invoice dated July 2 July 2) The cost of the merchandise sold to Wright Company was 5780 July 3) Paid $285 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 $1,500 July 9) Purchased merchandise from Lee Company for 52 600 under credit forms of 2/15, 1/60, FOB destination invoice dated July 9 July 11) Received a 5500 credit memorandum 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 Geitin Company for $2.000 under credit terms of 2/15, 160, FOB shipping point, invoice dated July 19 July 19) The cost of the merchandise sold to Griffin Company was $1400 July 21) issued a $400 credit memorandum to Getin Company for an allowance on goods sold on July 19 by 24) Pad Lee Company the balance due, net of discount July 30) Received the balance due from Griffin Company for the invoice dated July 19, nef of discount July 31) Sold merchandise to Wigh Company for $7800 under credit term of 2/10, 160, FOB shipping point invoice dated July 31 July 3) The cost of the merchandise sold to Wight Company was 54,700 Total gross profit Income Statement Proy 1 of 1 July 30 Received the balance due from Griffin Company for the invoice dated July 19, net of discount. July 31 sold merchandise that cost $4,700 to Wright Company for $7,800 under credit terms of 2/10, invoice dated July 31. Requirement General Journal General Ledger Trial 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