Prepare journal entries to record the following merchandising transactions of Clark'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-Ryan.) July 1 Purchased merchandise from Ryan Company for $6,600 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Sanchez Company for $1,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2 . The merchandise had cost $720. July 3 Paid $245 cash for freight charges on the purchase of July 1 . July 8 Sold merchandise that had cost $1,400 for $2,300 cash. July 9 Purchased merchandise from Perez Company for $2,500 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 Perez Company and debited its account payable for that amount. July 12 Received the balance due from Sanchez Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Ryan Company within the discount period. July 19 Sold merchandise that cost $1,300 to Hall Company for $1,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $400 to Hall Company for merchandise sold on July 19 and credited Hall's accounts receivable for that amount. July 24 Paid Perez Company the balance due, net of discount. July 30 Received the balance due from Hall Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $4,600 to Sanchez Company for $7,600 under credit terms of 2/10, n/60, FOB shipping 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 nartial income statement. Prepare journal entries to record the following merchandising transactions of Clark'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-Ryan.) July 1 Purchased merchandise from Ryan Company for $6,600 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Sanchez Company for $1,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2 . The merchandise had cost $720. July 3 Paid $245 cash for freight charges on the purchase of July 1 . July 8 Sold merchandise that had cost $1,400 for $2,300 cash. July 9 Purchased merchandise from Perez Company for $2,500 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 Perez Company and debited its account payable for that amount. July 12 Received the balance due from Sanchez Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Ryan Company within the discount period. July 19 Sold merchandise that cost $1,300 to Hall Company for $1,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $400 to Hall Company for merchandise sold on July 19 and credited Hall's accounts receivable for that amount. July 24 Paid Perez Company the balance due, net of discount. July 30 Received the balance due from Hall Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $4,600 to Sanchez Company for $7,600 under credit terms of 2/10, n/60, FOB shipping 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 nartial income statement