Prepare journal entries to record the following merchandising transactions of Zhang'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-Turner.) Jul. 1 Purchased merchandise from Turner Company for $11,800 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. Jul. 2 Sold merchandise to Hall Co. for $3,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $2,280. Jul. 3 Paid $1,285 cash for freight charges on the purchase of July 1. Jul. 8 Sold merchandise that had cost $4,500 for $7,500 cash. Jul. 9 Purchased merchandise from Clinton Co. for $5,100 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Jul. 11 Received a $1,000 credit memorandum from Clinton Co. for the return of part of the merchandise purchased on July 9. Jul. 12 Received the balance due from Hall Co. for the invoice dated July 2, net of the discount. Jul. 16 Paid the balance due to Turner Company within the discount period. Jul. 19 Sold merchandise that cost $4,900 to Thompson Co. for $7,000 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. Jul. 21 Issued a $1,400 credit memorandum to Thompson Co. for an allowance on goods sold on July 19. Jul. 24 Paid Clinton Co. the balance due, net of discount. Jul. 30 Received the balance due from Thompson Co. for the invoice dated July 19, net of discount. Jul. 31 Sold merchandise that cost $7,700 to Hall Co. for $12,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. se dated Julye dit terims to discount./60. FOR shipping point. 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. Zhang's Company Partial Income Statement For the Month Ended July 31, 2017 0 Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income The trial balance is a listing of all account balances from the General Ledger as of a specific date. Click on any individual account balance to return to the General Ledger. The trial balance is only as accurate as the underlying journal entries. If the total debits do not equal the total credits, you have a journal entry that is out of balance. If you have an abnormal ending balance (indicated with brackets in the general ledger), you should review the journal entries that affected that account to ensure that the journal entries are correct. Show less Zhang's Company Trial Balance July 31, 2017 Account Title Credit $ Debit 25,727 12,800 18,505 Cash Accounts receivable - Hall Merchandise inventory Common stock Sales Sales returns and allowances Sales discounts Cost of goods sold Total 39,000 23,600 1,400 188 3,980 62,600 $ $ 62,600
