Prepare journal entries to record the following merchandising transactions of Hall'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 PayableWilson.)

For each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any. Input decreases to net income as minus sign. Upon completion, compare the gross profit with the amount reported on the partial income statement.

Prepare journal entries to record the following merchandising transactions of Hall'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-Wilson.) July 1 Purchased merchandise from Wilson Company for $8,800 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1 July 2 Sold merchandise to Lee Company for $2,300 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,380 July 3 Paid $685 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $2,700 for $4,500cash. July 9 Purchased merchandise from King Company for $3,600 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9 . July 11 Returned $700 of merchandise purchased on July 9 from King Company and debited its account payable for that amount. July 12 Received the balance due from Lee Company for the invoice dated July 2 , net of the discount. July 16 Paid the balance due to Wilson Company within the discount period. July 19 Sold merchandise that cost $2,800 to Cabela Company for $4,000 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19 July 21 Gave a price reduction (allowance) of $800 to Cabela Company for merchandise sold on July 19 and credited Cabela's accounts receivable for that amount. July 24 Paid King Company the balance due, net of discount. July 30 Received the balance due from Cabela Company for the invoice dated July 19 , net of discount. July 31 Sold merchandise that cost $5,900 to Lee Company for $9,800 under credit terms of 2/10, n/60, FoB shipping point, invoice dated July 31 . 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. Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries. Journal entry worksheet Purchased merchandise from Wilson Company for $8,800 under credit terms of 1/15,n/30, FOB shipping point, invoice dated July 1. Note: Enter debits before credits. July 31 Sold merchandise that cost $5,900 to Lee Company for $9,800 under credit terms of 2/10, n/60, point, invoice dated July 31. Prepare a multiple-step income statement through the calculation of gross profit. For each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any. Input decreases to net income as minus sign. Upon completion, compare the gross profit with the amount reported on the partial income statement. Income Statement inpect on income