Prepare journal entries to record the following merchandising transactions of Griffin'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-Garcia.) Jul. 1 Purchased merchandise from Garcia Company for $9,000 under credit terms of 1/15, 1/30, FOB shipping point, invoice dated July 1. Jul.2 Sold merchandise to Thompson Co. for $2,400 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,440. Jul. 3 Paid $725 cash for freight charges on the purchase of July 1. Jul. B Sold merchandise that had cost $2,880 for $4,700 cash. Jul. 9 Purchased merchandise from Perry Co. for $3,700 under credit terms of 2/15, 1/60, FOB destination, invoice dated July 9. Jul. 11 Received a $700 credit memorandum from Perry Co. for the return of part of the merchandise purchased on July 9. Jul. 12 Received the balance due from Thompson Co. for the invoice dated July 2, net of the discount. Jul. 16 Paid the balance due to Garcia Company within the discount period. Jul. 19 Sold merchandise that cost $2,900 to Brown Co. for $4,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. Jul. 21 Issued a 5800 credit memorandum to Brown Co. for an allowance on goods sold on July 19. Jul. 24 Paid Perry Co. the balance due, net of discount. Jul. 30 Received the balance due from Brown Co. for the invoice dated July 19, net of discount. Jul. 31 Sold merchandise that cost $6,000 to Thompson Co. for $10,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Requirement General Journal 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 negative values. non ramnation romart 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 negative values. Upon completion, compare the gross profit with the amount reported on the partial income statement. to: Jul 31 Dates: Jul 01 Increase Impact on income (decrease) to income July 1) Purchased merchandise from Garcia Company for 59,006 under credit terms of 1/15, n/30, FOB shipping point Increases net income 9,000 invoice dated July 1. July 2: Sold merchandise to Thompson Co for 52,400 under credil terms of 2/10, 160, FOB shipping point, invoice dated Increases net income July 2 July 2) The cost of the merchandise sold to Thompson Co. was $1.440. July 3) Paid $725 cash for freight charges on the purchase of July 1 Jul, 8) Sold merchandise for $4,700 cash. July 8) The cost of the merchandise sold was $2,800 Jury 9) Purchased merchandise from Perry Co. for $3.700 under credit terms of 2/15, 1/60, FOB destination, Invoice dated July 9. Jul 11) Received a $700 credit memorandum from Perry Co for the return of part of the merchandise purchased on Jury 9. July 8) The cost of the merchandise sold was $2,800. July 9) Purchased merchandise from Perry Co. for $3,700 under credit terms of 2/15, 1/60, FOB destination, invoice dated July 9. July 11) Received a $700 creditshemorandum from Perry Co. for the return of part of the merchandise purchased on July 9. July 12) Received the balance due from Thompson Co. for the invoice dated July 2, net of the discount Joly 16) Paid the balance due to Garcia Company within the Ciscount period. July 19) Sold merchandise to Brown Co. for $4,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19 July 19) The cost of the merchandise sold to Brown Co. was $2,900 July 21) Issued a $800 credit memorandum to Brown Co. for an allowance on goods sold on July 19. July 24) Paid Perry Co the balance due, net of discount July 30) Received the balance due from Brown Co. for the invoice dated July 19, net of discount. July 31) Sold merchandise to Thompson Co. for $10,000 under credit terms of 2/10, 1/60, FOB shipping point, invoice dated July 31 July 31) The cost of the merchandise sold to Thompson Co. was $6,000. Total gross profit LT $ 9,000