july 12 & july 30
limpact on income Eincrease (decrease) to income 2,800 July 1) Purchased merchandise from Mannion Company for $9,800 under credit terms of 1/15, 1/30, FOB shipping point, No impact on income invoice dated July 1. July 2) Sold merchandise to Gonzalez Co. for $2,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated Increases net income July 2. July 2) The cost of the merchandise sold to Gonzalez Co. Decreases net income was $1,680. July 3) Paid $885 cash for freight charges on the purchase of IN July 1 No impact on income July 8) Sold merchandise for $5,500 cash. Increases net income (1,680) 5,500 (3,300) July 8) The cost of the merchandise sold was $3,300 Decreases net income July 9) Purchased merchandise from Knight Co. for $4,100 under credit terms of 2/15, n/60, FOB destination, invoice No impact on income dated July 9 July 11) Received a $800 credit memorandum from Knight Co. for the return of part of the merchandise purchased on No impact on income July 9. July 12) Received the balance due from Gonzalez Co. for the Decreases net income invoice dated July 2. net of the discount. July 16) Paid the balance due to Mannion Company within the discount period. No impact on income July 19) Sold merchandise to Lane Co for $5,000 under credit terms of 2/15, n/60, FOB shipping point, invoice dated Increases net income 5,000 credo 19 DJUJE 5,000 Jury Oj The Cost OI u mecanice sun was ),JUV. Decreases TICHILE July 9) Purchased merchandise from Knight Co. for $4,100 under credit terms of 2/15, n/60, FOB destination, invoice No impact on income dated July 9. July 11) Received a $800 credit memorandum from Knight Co. for the return of part of the merchandise purchased on No impact on income July 9. July 12) Received the balance due from Gonzalez Co. for the Decreases net income invoice dated July 2, net of the discount July 16) Paid the balance due to Mannion Company within the discount period. No impact on income July 19) Sold merchandise to Lane Co. for $5,000 under credit terms of 2/15, n/60, FOB shipping point, invoice dated Increases net income July 19. July 19) The cost of the merchandise sold to Lane Co. was Decreases net income $3,500. July 21) Issued a $1,000 credit memorandum to Lane Co. for Inerreaceen an allowance on goods sold on July 19. July 24) Paid Knight Co the balance due, net of discount. No impact on income July 30) Received the balance due from Lane Co. for the Decreases net income invoice dated July 19, net of discount July 31) Sold merchandise to Gonzalez Co. for $10.800 under credit terms of 2/10, n/60, FOB shipping point, invoice Increases net income dated July 31 July 31) The cost of the merchandise sold to Gonzalez Co. Decreases net income was 56,500 Total gross profit (3,500) (1,000) 10.800 (6500) 8.120 of 1
