Prepare journal entries to record the following merchandising transactions of Wright'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 Martin.) July 1 Purchased merchandise from Martin Company for $9,600 under credit teres of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Clark Company for $2.700 under credit terms of 2/10, n/68, FOB shipping point, invoice dated July 2. The merchandise had cost $1,628. July 3 Paid $845 cash for freight charges on the purchase of July 1. July B Sold merchandise that had cost $3,200 for $5,300 cash. July 9 Purchased merchandise from Mitchell Company for $4,000 under credit terms of 2/15, n/68, FOB destination, invoice dated July 9. July 11 Returned $800 of merchandise purchased on July 9 from Mitchell Company and debited its account payable for that amount. July 12 Received the balance due from Clark Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Martin Company within the discount period. July 19 Sold merchandise that cost $3,400 to Gonzalez Company for $4,800 under credit terms of 2/15, n/60, F08 shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $1,000 to Gonzalez Company for merchandise sold on July 19 and credited Gonzalez's accounts receivable for that amount. July 24 Paid Mitchell Company the balance due, net of discount. July 30 Received the balance due from Gonzalez Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $6,400 to Clark Company for $10,600 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income 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. July 1) Purchased merchandise from Martin Company for $9,600 under credit terms of 1/15, n30, FOB shipping point. Invoice dated July 1. July 2) Sold merchandise to Clark Company for $2.700 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2 July 2) The cost of the merchandise sold to Clark Company was $1,620 July 3) Paid $845 cash for freight charges on the purchase of July 1 July B) Sold merchandise for $5,300 cash July 8) The cost of the merchandise sold was $3,200 July 9) Purchased merchandise from Mitchell Company for $4.000 under credit terms of 2/15, n60, FOB destination. invoice dated July 9. July 11) Received a $300 credit memorandum from Michell Company for the return of part of the merchandise purchased on July 2 July 12) Received the balance due from Clark Company for the invoice dated July 2, net of the discount July 16) Paid the balance due to Martin Company within the discount period. July 19) Sold merchandise to Gonzalez Company for $4,800 under credit terms of 2/15, ND, FOB shipping point, invoice dated July 19. July 191 The cost of the merchandise sold to Gonzalez Company was $3.400 July 21) sued a $1,000 credit memorandum to Gonzalez Company for an allowance on goods sold on July 19 July 24) Paid Machell Company the balance due, ret of discount July 30) Received the balance due from Gonzalez Company for the invoice dated July 19. net of discount July 31) Sold merchandise to Clark Company for $10.600 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. July 31) The cost of the merchandise sold to Clark Company Total gross profit Income Statemend