Prepare journal entries to record the following merchandising transactions of Taylor's, which uses the perpe the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable-Walker.) Jul. 1 Purchased merchandise from Walker Company for $8,600 under credit terms of 1/15, 1/30, FOB shipping point, invoice dated July 1. Jul. 2 Sold merchandise to Perry Co. for $2,200 under credit terms of 2/10, 1/60, POB shipping point, invoice dated July 2. The merchandise had cost $1,320. Jul. 3 Paid $645 cash for freight charges on the purchase of July 1. Jul. Sold merchandise that had cost $2,600 for $4,300 cash. Jul. 9 Purchased merchandise from Ryan Co. for $3,500 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Jul. 11 Received a $700 credit memorandum from Ryan Co. for the return of part of the merchandise purchased on July 9. Jul. 12 Received the balance due from Perry Co. for the invoice dated July 2, net of the discount. Jul. 16 Paid the balance due to Walker Company within the discount period. Jul. 19 Sold merchandise that cost $2,700 to Clinton Co. for $3,800 under credit terms of 2/15, n/60, TOB shipping point, invoice dated July 19. Jul. 21 Issued a $800 credit memorandum to clinton Co. for an allowance on goods sold on July 19. Jul. 24 Paid Ryan Co. the balance due, net of discount. Jul. 30 Received the balance due from Clinton Co. for the invoice dated July 19, net of discount. Jul. 31 Sold merchandise that cost $5,800 to Perry Co. for $9,600 under credit terms of 2/10, n/60, POB shipping point, invoice dated July 31. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries. View transaction list View journal entry worksheet No Date Jul 01 Credit Account Title Merchandise inventory Accounts payable. Walker Debit 8,600 8.600 2 Jul 02 Accounts payable. Perry 2.200 Jul. Purchased merchandise from Myan Co. tor 53,500 under credit terms of 2/15, 1/60, FOB destination, invoice dated July 9. Jal. 11 Received a $700 credit memorandum from Ryan Co. for the return of part of the merchandise purchased on July 9. Jul. 12 Received the balance due from Perry Co. for the invoice dated July 2, not of the discount. Jul. 16 Paid the balance due to Walker Company within the discount period. Jul. 19 Sold merchandise that cost $2,700 to Clinton Co. for $3,800 under credit terms of 2/15, 1/60, POB shipping point, invoice dated July 19. Jul. 21 Issued a $800 credit memorandum to Clinton Co. for an allowance on goods sold on July 19. Jul. 24 Paid Ryan Co. the balance due, net of discount. Jul. 30 Received the balance due from Clinton Co. for the invoice dated July 19, net of discount. Jul. 31 Sold merchandise that cost $5,800 to Perry Co. for $9,600 under credit terms of 2/10, 1/60, POB shipping point, invoice dated July 31. 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. Taylor's Company Partial Income Statement For the Month Ended July 31, 2017 { Shedule of Payables Impact on Income > 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 Walker Company for $8,600 under credit terms of 1/15, n/30, FOB shipping point invoice dated July 1. July 2) Sold merchandise to Perry Co. for $2,200 under credit terms of 2/10, 1/60, FOB shipping point, invoice dated July 2. July 2) The cost of the merchandise sold to Perry Co. was $1,320. July 3) Paid $645 cash for freight charges on the purchase of July 1. July 8) Sold merchandise for $4,300 cash. July 8) The cost of the merchandise sold was $2,600 July 9) Purchased merchandise from Ryan Co. for $3,500 under credit terms of 2/15, 1/60, FOB destination, invoice dated July 9. July 11) Received a $700 credit memorandum from Ryan Co. for the return of part of the merchandise purchased on July 9. July 12) Received the balance due from Perry Co. for the invoice dated July 2, net of the discount. July 16) Paid the balance due to Walker Company within the discount period. July 19) Sold merchandise to Clinton Co. for $3,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19 July 19) The cost of the merchandise sold to Clinton Co. was $2,700. July 21) Issued a $800 credit memorandum to Clinton Co. for July 2) Sold merchandise to Perry Co. for $2,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. July 2) The cost of the merchandise sold to Perry Co. was $1,320 July 3) Paid $645 cash for freight charges on the purchase of July 1. July 8) Sold merchandise for $4,300 cash. July 8) The cost of the merchandise sold was $2,600. July 9) Purchased merchandise from Ryan Co. for $3,500 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11) Received a $700 credit memorandum from Ryan Co. for the return of part of the merchandise purchased on July 9. July 12) Received the balance due from Perry Co. for the invoice dated July 2, net of the discount. July 16) Paid the balance due to Walker Company within the discount period July 19) Sold merchandise to Clinton Co. for $3,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 19) The cost of the merchandise sold to Clinton Co. was $2,700. July 21) Issued a $800 credit memorandum to Clinton Co. for an allowance on goods sold on July 19. July 24) Paid Ryan Co, the balance due, net of discount. July 30) Received the balance due from Clinton Co. for the invoice dated July 19, net of discount. July 31) Sold merchandise to Perry Co. for $9,600 under credit terms of 2/10, 1/60, FOB shipping point, invoice dated July 31. July 31) The cost of the merchandise sold to Perry Co. was $5,800 Total gross profit