Prepare journal entries to record the following merchandising transactions of Garcia's, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable, for example, record the purchase on July 1 in Accounts Payable Brown.) Jul. 1 Purchased merchandise from Brown Company for $7,600 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. Jul. 2 Sold merchandise to Turner Co. for $1,700 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,020. Jul. 3 Paid $445 cash for freight charges on the purchase of July 1. Jul. 8 Sold merchandise that had cost $2,000 for $3,300 cash. Jul. 9 Purchased merchandise from Hall Co. for $3,000 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Jul. 11 Received a $600 credit nerandum from Hall Co. for the return of part of the merchandise purchased on July 9. Jul. 12 Received the balance due from Turner Co. for the invoice dated July 2, net of the discount. Jul. 16 Paid the balance due to Brown Company within the discount period. Jul. 19 Sold merchandise that cost $2,000 to Carter Co. for $2,800 under credit terms of 2/15, 1/60, FOB shipping point, invoice dated July 19. Jul. 21 Issued a $600 credit memorandum to Carter Co. for an allowance on oods sold on July 19. Jul. 24 Pald Hall Co the balance due, net of discount. Jul. 30 Received the balance due from Carter Co. for the invoice dated July 19, net of discount. Jul. 31 Sold merchandise that cost $5,200 to Turner Co. for $8,600 under credit terms of 2/10, 1/60, FOB shipping point, invoice dated July 31. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income View transaction list -43:45 Jul. 1) Purchased merchandise from Brown Company for $7,600 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. Jul. 2) Sold merchandise to Turner Co. for $1,700 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. 3 Credit Jul. 2) The cost of the merchandise sold to Turner Co. was $1,020. 1,07 4 Jul. 3) Paid $445 cash for freight charges on the purchase of July 1. S Jul. 8) Sold merchandise for $3,300 cash. Note : = journal entry has been entered 6 Jul. 8) The cost of the merchandise sold was $2,000. 7 Jul. 9) Purchased merchandise from Hall Co. for $3,000 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. 8 Jul. 11) Received a $600 credit memorandum from Hall Co. for the return of part of the merchandise purchased on July 9 9 Jul. 12) Received the balance due from Turner Co. for the invoice dated July 2, net of the discount. 10 Jul. 16) Paid the balance due to Brown Company within the discount neriod. Note : = journal entry has been entered al balance Requirement Ledger Receivables Journal Journalize the merchandising transactions. The General Ledger, trialb payable will be updated based on your entries. View transaction list 11 Jul. 19) Sold merchandise to Carter Co. for $2,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. 12 Jul. 19) The cost of the merchandise sold to Carter Co. was $2,000. 13 Jul. 21) Issued a $600 credit memorandum to Carter Co. for an allowance on goods sold on July 19. 14 Jul. 24) Paid Hall Co. the balance de, net of discount. 15 Jul. 30) Received the balance due from Carter Co. for the invoice dated July 19, net of discount. Note : = journal entry has been entered G Trial Balance Receivables Pay Requirement Journal Ledger Journalize the merchandising transactions. The General Ledger, trial bal payable will be updated based on your entries. View transaction list 13 Jul. 21) Issued a $600 credit memorandum to Carter Co. for an allowance on goods sold on July 19. 14 Jul. 24) Paid Hall Co. the balance due, net of discount. 15 Jul. 30) Received the balance due from Carter Co. for the invoice dated July 19, net of discount. 16 Jul. 31) Sold merchandise to Turner Co. for $8,600 under credit terms of 2/10, n/60, RUB shipping point, invoice dated July 31. 17 Jul. 31) The cost of the merchandise sold to Turner Co. was $5,200. Note : = journal entry has been entered 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. Garcia's Company Partial Income Statement For the Month Ended July 31, 2017 5 LIL am G Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income For each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any. Input decreases to net income as minus sign. Upon completion, compare the gross profit with the amount reported on the partial income statement. Impact on income Increase (decrease) to income July 1) Purchased merchandise from Brown Company for $7,600 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2) Sold merchandise to Turner Co. for $1,700 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2 July 2) The cost of the merchandise sold to Turner Co. was $1,020 July 3) Paid $445 cash for freight charges on the purchase of July 1 July 8) Sold merchandise for $3,300 cash. July 8) The cost of the merchandise sold was $2,000 July 9) Purchased merchandise from Hall Co, for $3,000 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11) Received a $600 credit memorandum from Hall Co. for the return of part of the merchandise purchased on July July 12) Received the balance due from Tumer Co. for the Saved cam July 8) The cost of the merchandise sold was $2,000. July 9) Purchased merchandise from Hall Co. for $3,000 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11) Received a $600 credit memorandurn from Hall Co. for the return of part of the merchandise purchased on July July 12) Received the balance due from Tumer Co. for the invoice dated July 2, net of the discount. July 16) Paid the balance due to Brown Company within the discount period July 19) Sold merchandise to Carter Co. for $2,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 19) The cost of the merchandise sold to Carter Co. was $600. July 21) Issued a $600 credit memorandum to Carter Co. for an allowance on goods sold on July 19. July 24) Paid Hall Co the balance due, net of discount. July 30) Received the balance due from Carter Co. for the invoice dated July 19, net of discount. July 31) Sold merchandise to Turner Co. for $8.600 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. July 31) The cost of the merchandise sold to Turner Co. was $5,200. Total gross profit