P5-2A Powell Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred.

June	1	Purchased books on account for $1,040 (including freight) from Catlin Publishers, terms 2/10, n/30.
	3	Sold books on account to Garfunkel Bookstore for $1,200. The cost of the merchandise sold was $720.
	6	Received $40 credit for books returned to Catlin Publishers.
	9	Paid Catlin Publishers in full.
	15	Received payment in full from Garfunkel Bookstore.
	17	Sold books on account to Bell Tower for $1,200. The cost of the merchandise sold was $730.
	20	Purchased books on account for $720 from Priceless Book Publishers, terms 1/15, n/30.
	24	Received payment in full from Bell Tower.
	26	Paid Priceless Book Publishers in full.
	28	Sold books on account to General Bookstore for $1,300. The cost of the merchandise sold was $780.
	30	Granted General Bookstore $130 credit for books returned costing $80.

Instructions

1. Journalize the transactions for the month of June for Powell Warehouse, using a perpetual inventory system.

2. Post to Ledgers and compute balances

3. Prepare Trial Balance

4. Prepare Partial Income Statement up to Gross Profit