Prepare a multistep income statement

Prepare journal entries to record the following merchandising transactions of Mitchell's, which uses the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable-Walker) Aug. Aug. 1 Purchased merchandise from Walker Company for $11,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Aug. 5 Sold merchandise to Hall Corp. for $7,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4,300. 8 Purchased merchandise from Taylor Corporation for $6,200 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. Aug 9 Paid $925 cash for shipping charges related to the August 5 sale to Hall Corp. Aug. 10 Hall returned merchandise from the August 5 sale that had cost Mitchell's $300 and was sold for $600. The merchandise was restored to inventory. Aug. 12 After negotiations with Taylor Corporation concerning problems with the purchases on August 8 Mitchell's received a credit memorandum from Taylor granting a price reduction of $900 off the $6,200 of goods purchased. Aug. 14 At Walker's request, Mitchell's paid $700 cash for freight charges on the August 1 purchase, reducing the amount owed to Walker. Aug. 15 Received balance due from Hall Corp. for the August 5 sale less the return on August 10. Aug. 18 Paid the amount due Taylor Corporation for the August 8 purchase less the price allowance from August 12. Aug. 19 Sold merchandise to Wilson Co. for $4,200 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $2,100. Aug. 22 Wilson requested a price reduction on the August 19 sale because the merchandise did not specifications. Mitchell's sent Wilson a $500 credit memorandum toward the $4,200 invoice to resolve the issue. Aug. 29 Received Wilson's cash payment for the amount due from the August 19 sale less the price allowance from August 22. Aug. 30 Paid Walker Company the amount due from the August 1 purchase. meet Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Prepare a multiple-step income statement Mitchell's Company Income Statement For the Month Ended August 31, 2019 $ 0 $ 0 0 0 0 0 Operating expenses Net income