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Prepare journal entries to record the following merchandising transactions of Allen's, which uses the perpetual inventory system and the gross method. (Hint: It will help

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Prepare journal entries to record the following merchandising transactions of Allen'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--Perez.) Jul. 1 Purchased merchandise from Perez Company for $9,200 under credit terms of 1/15, 1/30, ro shipping point, Invoice dated July 1. ul. 2 Sold merchandise to Cabela Co. for $2,500 under credit terns of 2/10, 1/60, FOB shipping point, invoice dated July 2. The merchandise hod cost $1,500. Jul 3 Paid $765 cash for freight charges on the purchase of July 1. Jul. 8 Sold merchandise that had cost $2,900 for $4,900 cash. Jul. 9 Purchased merchandise from Wright Co. for $3,see under credit terms of 2/15, n/6e, Fos destination, invoice dated July 9. ul. 11 Returned $600 of merchandise purchased on July 9 from Wright Co. and debited its account payable for that amount. Jul. 12 Received the balance due from Cabelo Co. for the invoice dated July 2, net of the discount. Jul. 16 Poid the balance due to Perer Company within the discount period. Jul. 19 Sold merchandise that cost $3.100 to Lee Co. for $4,400 under credit terns of 2/15, 1/60, FOB shipping point, invoice dated Duly 19. Jul. 21 Gave a price reduction allowance) of $900 to Lee Co. for merchandise sold on July 19 and credited Lee's accounts receivable for that amount. Jul. 24 Paid Wright Co. the balance due, net of discount Jul. 30 Received the balance due from Lee Co. for the invoice dated July 19, net of discount. Jul. 31 Sold merchandise that cost 56,100 to Cabela Co. for $10,200 under credit terms of 2/10, 1/60, POS 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. Allen's Company Partial Income Statement For the Month Ended July 21, 2019 No joumal entry required s 0 0 0 0 0 0

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