Prepare journal entries to record the following merchandising transactions of Clark's, which uses the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts PayableSanchez.) was Aug. 1 Purchased merchandise from Sanchez Company for $8,100 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Aug. 5 Sold merchandise to King Corp. for $5,500 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $3,300. Aug. 8 Purchased merchandise from Ryan Corporation for $5,520 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. Aug. 9 Paid $725 cash for shipping charges related to the August 5 sale to King Corp. Aug. 10 King returned merchandise from the August 5 sale that had cost Clark's $200 and sold for $400. The merchandise was restored to inventory. Aug. 12 After negotiations with Ryan Corporation concerning problems with the purchases on August 8, Clark's received a credit memorandum from Ryan granting a price reduction of $700 off the $5,520 of goods purchased. Aug. 14 At Sanchez's request, Clark's paid $500 cash for freight charge on the Aug 1 purchase, reducing the amount owed to Sanchez. Aug. 15 Received balance due from King Corp. for the August 5 sale less the return on August 10. Aug. 18 Paid the amount due Ryan Corporation for the August 8 purchase less the price allowance from August 12. Aug. 19 Sold merchandise to Wright Co. for $3,800 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $1,900. Aug. 22 Wright requested a price reduction on the August 19 sale because the merchandise did not meet specifications. clark's sent Wright a $400 credit memorandum toward the $3,800 invoice to resolve the issue. Aug. 29 Received Wright's cash payment for the amount due from the August 19 sale less the price allowance from August 22. Aug. 30 Paid Sanchez Company the amount due from the August 1 purchase. General Journal tab - Journalize the merchandising transactions. The General Ledger, trial balance and schedules of accounts receivable and accounts payable will be updated based on your entries. General Ledger Tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance Tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. Income Statement tab - Prepare a multiple-step income statement. Impact on Income tab - Indicate the impact each transaction had on net income. General Ledger Account Cash Merchandise inventory No. Date Debit Credit Balance No. Date Debit Credit Balance Aug 01 51,500 Aug 01 13,000 Common stock No. Date Debit Credit Balance Jul 01 64,500 Clark's Company Trial Balance August 30, 2020 Account Title Debit Credit Cash $ 51,500 13,000 Merchandise inventory Common stock 64,500 Total $ 64,500 $ 64,500 Dates: Jul 01 to: Aug 30 Clark's Company Schedule of Accounts Receivable Accounts receivable - Sanchez $ 0 o Accounts receivable - King Accounts receivable - Wright Accounts receivable - Ryan 0 0 0 Total accounts receivable $ o Clark's Company Income Statement For the Month Ended August 31, 2020 0 $ 0 0 0 0 0 Operating expenses: Net income Dates: Jul 01 to: Aug 30 0 Clark's Company Schedule of Accounts Payable Accounts payable - Sanchez Accounts payable - King Accounts payable - Wright Accounts payable - Ryan 0 0 0 0 Total accounts payable 0 Impact on income (decrease) to income Aug. 1) Purchased merchandise from Sanchez Company for $8,100 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Aug. 5) Sold merchandise to King Corp. for $5,500 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. Aug. 5) The merchandise sold to King had cost $3,300. Aug. 8) Purchased merchandise from Ryan Corporation for $5,520 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. Aug. 9) Paid $725 cash for shipping charges related to the August 5 sale to King Corp. Aug. 10) King returned merchandise from the August 5 sale that had sold for $400. Aug. 10) The cost of the merchandise returned by Clark's was $200. The merchandise was restored to inventory. Aug. 12) After negotiations with Ryan Corporation concerning problems with the purchases on August 8, Clark's received a credit memorandum from Ryan granting a price reduction of $700 off the $5,520 of goods purchased. Aug. 14) At Sanchez's request, Clark's paid $500 cash for freight charges on the August 1 purchase, reducing the amount owed to Sanchez. Aug. 15) Received balance due from King Corp. for the August 5 sale less the return on August 10. Aug. 18) Paid the amount due Ryan Corporation for the August 8 purchase less the price allowance from August 12. Aug. 19) Sold merchandise to Wright Co. for $3,800 under credit terms of n/10, FOB shipping point, invoice dated August 19 Aug. 19) Sold merchandise to Wright Co. for $3,800 under credit terms of n/10, FOB shipping point, invoice dated August 19 Aug. 19) The cost of the merchandise sold merchandise to Wright was $1,900. Aug. 22) Wright requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Clark's sent Wright a $400 credit memorandum toward the $3,800 invoice to resolve the issue. Aug. 29) Received Wright's cash payment for the amount due from the August 19 sale less the price allowance from August 22. Aug. 30) Paid Sanchez Company the amount due from the August 1 purchase. Total income $ 0