Jul. 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. Jul. 2 Sold merchandise to Creek Co. for $990 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500. Jul. 3 Paid $125 cash for freight charges on the purchase of July 1. Jul. 8 Sold merchandise that had cost $1,300 for $1,700 cash. Jul. 9 Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Jul. 11 Returned $200 of merchandise purchased on July 9 from Leight Co. and debited its account payable for that amount. Jul. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. Jul. 16 Paid the balance due to Boden Company within the discount period. Jul. 19 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB shipping point, Invoice dated July 19. Jul. 21 Gave a price reduction (allowance) of $100 to Art Co. for merchandise sold on July 19 and credited Art's accounts receivable for that amount. Jul. 24 Paid Leight Co. the balance due, net of discount. Jul 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount. Jul. 31 Sold merchandise that cost $4,800 to Creek Co. for $7,000 under credit terms of 2/10, 1/60, FOB shipping point, invoice dated July 31. Impact on income Increase (decrease) to income July 1) Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, No impact on income invoice dated July 1. July 2) Sold merchandise to Creek Co. for $900 under credit terms of 2/10, 1/60, FOB shipping point, invoice dated July 2. Increases net income July 2) The cost of the merchandise sold to Creek Co. was No impact on income $500. July 3) Paid $125 cash for freight charges on the purchase Decreases net income of July 1. July 8) Sold merchandise for $1,700 cash. Increases net income July 8) The cost of the merchandise sold was $1,300. No impact on income July 9) Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, 1/60, FOB destination, invoice Decreases net income dated July 9. July 11) Received a $200 credit memorandum from Leight Co. for the return of part of the merchandise purchased on Increases net income July 9. July 12) Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. Decreases net income July 16) Paid the balance due to Boden Company within the discount period. Increases net income July 19) Sold merchandise to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July Increases net income 19. July 19) The cost of the merchandise sold to Art Co. was $800. No impact on income July 21) Issued a $100 credit memorandum to Art Co. for an Decreases net income allowance on goods sold on July 19. July 24) Pald Leight Co the balance due, net of discount Increases net income July 30) Received the balance due from Art Co. for the Decreases net income invoice dated July 19, net of discount. July 31) Sold merchandise to Creek Co. for $7,000 under nendit me Annien COD chinninn nnint inunine dated AARA RARA es July 2) The cost of the merchandise sold to Creek Co. was No impact on income $500. July 3) Paid $125 cash for freight charges on the purchase Decreases net income of July 1 July 8) Sold merchandise for $1,700 cash. Increases net income July 8) The cost of the merchandise sold was $1,300. No impact on income July 9) Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, 1/60, FOB destination, invoice Decreases net income dated July 9. July 11) Received a $200 credit memorandum from Leight Co. for the return of part of the merchandise purchased on Increases net income July 9. July 12) Received the balance due from Creek Co. for the Decreases net income invoice dated July 2, net of the discount. July 16) Paid the balance due to Boden Company within the discount period Increases net income July 19) Sold merchandise to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July Increases net income July 19) The cost of the merchandise sold to Art Co. was $800. No impact on income July 21) Issued a $100 credit memorandum to Art Co. for an allowance on goods sold on July 19. Decreases net income July 24) Paid Leight Co. the balance due, net of discount Increases net income July 30) Received the balance due from Art Co. for the invoice dated July 19, net of discount. Decreases net income July 31) Sold merchandise to Creek Co. for $7,000 under credit terms of 2/10, 1/60, FOB shipping point, invoice dated Increases net income July 31 July 31) The cost of the merchandise sold to Creek Co. was No impact on income $4,800 Total gross profit 19. 0 Income Statement impact on income