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.)

1 through 17 table

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		Returned $1,000 of merchandise purchased on July 9 from Clinton Co. and debited its account payable for that amount.
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		Gave a price reduction (allowance) of $1,400 to Thompson Co. for merchandise sold on July 19 and credited Thompsons accounts receivable for that amount.
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.

Options for Account Tile for 1 through 17 table

• 000: No journal entry required
• 101: Cash
• 106: Accounts receivable - Thompson
• 107: Accounts receivable - Turner
• 108: Accounts receivable - Hall
• 109: Accounts receivable - Clinton
• 120: Merchandise inventory
• 201: Accounts payable - Thompson
• 202: Accounts payable - Turner
• 203: Accounts payable - Hall
• 204: Accounts payable - Clinton
• 209: Salaries payable
• 226: Unearned fees
• 307: Common stock
• 319: Dividends
• 403: Sales
• 404: Sales returns and allowances
• 405: Sales discounts
• 600: Cost of goods sold
• 602: Purchases
• 603: Purchases returns and allowances
• 604: Purchases discounts
• 640: Rent expense
• 652: Freight-in
• 660: Delivery expense
• 901: Income summary

Options for the Month ended July

• 000: No journal entry required
• 101: Cash
• 106: Accounts receivable - Thompson
• 107: Accounts receivable - Turner
• 108: Accounts receivable - Hall
• 109: Accounts receivable - Clinton
• 120: Merchandise inventory
• 201: Accounts payable - Thompson
• 202: Accounts payable - Turner
• 203: Accounts payable - Hall
• 204: Accounts payable - Clinton
• 209: Salaries payable
• 226: Unearned fees
• 307: Common stock
• 319: Dividends
• 403: Sales
• 404: Sales returns and allowances
• 405: Sales discounts
• 600: Cost of goods sold
• 602: Purchases
• 603: Purchases returns and allowances
• 604: Purchases discounts
• 640: Rent expense
• 652: Freight-in
• 660: Delivery expense
• 901: Income summary

Another part of this table

Options for this table (Impact on Income)

• 000: Increases net income
• 000: Decreases net income
• 000: No impact on income

Schedule of General General Schedule of Income Impact on Trial Balance Requirement Journal Ledger Receivables Payables Statement Income 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 the income statement through the calculation of gross profit. Impact on Income tab - Indicate the impact each transaction had on net income. Journal entry worksheet 2 4 5 6 8 17 Purchased merchandise from Turner Company for $11,800 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. Note: Enter debits before credits. Credit Date Account Title Debit Jul 01 General Schedule of Schedule of General Income Impact on Trial Balance Requirement Journal Ledger Payables Receivables Statement Income Each journal entry is posted automatically to the general ledger. Think of the general ledger as sorting all of your journal entries by account title. Click on any of the individual amounts to return to the underlying journal entry. General Ledger Account Merchandise inventory Cash Debit No. Date Debit Credit Balance No. Date Credit Balance Jul 01 Jul 01 26,000 13,000 Common stock No. Date Debit Credit Balance 39,000 Jun 30 General Schedule of Schedule of General Income Impact on Trial Balance Requirement Journal Ledger Receivables Payables Statement Income The trial balance is a listing of all account balances from the General Ledger as of a specific date. Click on any individual account balance to return to the General Ledger. The trial balance is only as accurate as the underlying journal entries. If the total debits do not equal the total credits, you have a journal entry that is out of balance. If you have an abnormal ending balance (indicated with brackets in the general ledger), you should review the journal entries that affected that account to ensure that the journal entries are correct. Show lessA Zhang's Company Trial Balance July 31, 2019 Account Title Debit Credit Cash $ 26,000 13,000 Merchandise inventory Common stock 39,000 Total 39,000 $ 39,000 Schedule of Receivables General Schedule of General Income Impact on Trial Balance Requirement Journal Ledger Payables Statement Income No input required Dates: Jul 01 to: Jul 31 Zhang's Company Schedule of Accounts Receivable Accounts receivable - Thompson Accounts receivable - Turner Accounts receivable - Hall 12,800 Accounts receivable - Clinton 12,800 Total accounts receivable General Schedule of Schedule of Impact on Income General Income Trial Balance Requirement Journal Ledger Receivables Payables Statement No input required Dates: Jul 01 to: Jul 31 Zhang's Company Schedule of Accounts Payable Accounts payable - Thompson Accounts payable - Turner Accounts payable - Hall Accounts payable - Clinton Total accounts payable ololoo General General Schedule of Schedule of Impact on Income Requirement Trial Balance Journal Ledger Receivables Payables Statement Income Prepare a multiple-step income statement through the calculation of gross profit. Zhang's Company Partial Income Statement For the Month Ended July 31, 2019 Increase (decrease) to income Impact on income July 1) Purchased merchandise from Turner Company for $11,800 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2) Sold merchandise to Hall Co. for $3,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. July 2) The cost of the merchandise sold to Hall Co. was $2,280. July 3) Paid $1,285 cash for freight charges on the purchase of July 1. July 8) Sold merchandise for $7,500 cash. July 8) The cost of the merchandise sold was $4,500. July 9) Purchased merchandise from Clinton Co. for $5,100 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11) Received a $1,000 credit memorandum from Clinton Co. for the return of part of the merchandise purchased on July 9. July 12) Received the balance due from Hall| Co. for the invoice dated July 2, net of the discount. July 12) Received the balance due from Hall Co. for the invoice dated July 2, net of the discount. July 16) Paid the balance due to Turner Company within the discount period. July 19) Sold merchandise to Thompson Co. for $7,000 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 19) The cost of the merchandise sold to Thompson Co. was $4,900. July 21) Issued a $1,400 credit memorandum to Thompson Co. for an allowance on goods sold on July 19. July 24) Paid Clinton Co. the balance due, net of discount. July 30) Received the balance due from Thompson Co. for the invoice dated July 19, net of discount. July 31) Sold merchandise to Hall Co. for $12,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. July 31) The cost of the merchandise sold to Hall Co. was $7,700. Total gross profit