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Prepare journal entries to record the following merchandising transactions of Lane's, which uses the perpetual inventory system and the gross method. July 1 Purchased merchandise

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Prepare journal entries to record the following merchandising transactions of Lane's, which uses the perpetual inventory system and the gross method. July 1 Purchased merchandise from Perry Company tor $7,000 under credit terns of 1/15, n/30, POB shipping point, invoice dated July 1. July 2 Sold nerchandise to Carter Company for $1,400 under credit terms of 2/10, n/60, TOB shipping point, invoice dated July 2. The merchandise had cost $840. July ) Paid $325 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,600 for $2,700 cash. July 9 Purchased merchandise from Martin Company for $2,700 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $500 of merchandise purchased on July 9 from Martin Company and debited its account payable for that amount. July12 Received the balance due fron Carter Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Perry Company within the discount period. July 19 Sold merchandise that cost $1,500 to Allen Company for $2,200 under credit terms of 2/15, 1/60. FOB shipping point, invoice dated July 19. July 21 Cave a price reduction (allowance) of $400 to Allen Company for merchandise sold on July 19 and credited Allen's accounts receivable for that amount. July 24 Paid Martin Company the balance due, net of discount. July 30 Received the balance due from Allen Company for the invoice dated July 19, net of discount. July 31 sold merchandise that cost $4,000 to Carter Company for $8.000 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 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 Journal entry worksheet 10 11 12 13 14 15 16 17

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