Prepare journal entries to record the following merchandising transactions of Garcia's, which uses the perpetual inventory system and the gross method. July 1 Purchased merchandise from Brown Company for $7,600 under credit terms of 1/15,n/30, F0B shipping point, invoice dated July 1. July 2 Sold merchandise to Turner Company for $1,700 under credit terms of 2/10,n/60, FOB shipping point, involce dated July 2 . The merchandise had cost $1,020. July 3 Paid $445 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $2,000 for $3,300 cash. July 9 Purchased merchandise from Hall Company for $3,000 under credit terms of 2/15,n/60, FoB destination, invoice dated July 9. Juty 11 Returned $680 of merchandise purchased on July 9 from Hall Company and debited its account payable for that July12 Received the balance due from Turner Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Brown Company within the discount period. July 19 Sold merchandise that cost $2,000 to Carter Company for $2,800 under credit terms of 2/15, n/60, F0B shipping July 21 Gave a price reduction (allowance) of $600 to Carter Company for merchandise sold on July 19 and credited Carter's accounts receivable for that amount. July 24 Paid Hall Company the balance due, net of discount. Juty 30 Received the batance due from Carter Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $5,200 to Turner Company for $8,600 under credit terms of 2/10, n/60, F08 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. 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. 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 Brown Company for $7,600 under credit terms of 1/15,n/30, FOB shipping point, Invoice dated July 1 . Note: Enter debits before credits. Joty 26 pasd the batance due to Brown Company wathin the discount period. July 19 Sold merchandise that cost $2,020 to Corter Company for $2,800 under credit terns of 2/15, n/60, FoB shipping point, invoice dated July 19. Juty 21 Gave a price reduction (aliowance) of $600 to Carter Company for merchandise sold on July 19 and credited Carter's accounts receivable for that amount. Juty 24 Paid Hati Company the balance due, net of discount. July 30 Received the balance due fron Carter Company for the invoice dated Juty 19, net of discount. Juty 31 Sold merchandise that cost $5,200 to Turner Conpany for $8,600 under credit terms of 2/10, n/60, Fo8 shipping point, invoice dated Juty 31 . 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 underiying journal entry. July 21 Gave a price reduction (allowance) of $600 to Carter Company for merchandise sold on Juty 19 and cre Carter's accounts receivable for that amount. July 24 Paid Hatl Company the batance due, net of discount. July 30 Received the balance due from Carter Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $5,200 to Turner Company for $8,600 under credit terms of 2/10,n/60, FOB sh point, invoice dated July 31 . Schedule of Payables 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 detall 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. Schedule of Receivables tab - General ledger software automates the balances for each of the customers' accounts. Schedule of Payables tab - General ledger software automates the balances for each of the suppliers' accounts. 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. 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 hat account to ensure that the journal entries are correct. Juty 30 Received the balance due fron Carter Company for the invoice dated July. 19, net of discount. July 31 Sold merchandise that cost $5,200 to Turner Company for $8,680 under credit teras of 2/10, n/60, Fob ship point, invoice dated Juty 31 . No input required For each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any. Decreases in net income should be entered with a minus sign. Upon completion, compare the gross profit with the amount reported on the partial income statement. 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 fournal 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