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 PayableTurner.)

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.

• General Journal
• General Ledger
• Trial Balance
• Schedule of Receivables
• Schedule of Payables
• Income Statement
• Impact on Income