Prepare journal entries to record the following merchandising transactions of Ryan'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 PayableWright.)

Jul.		1		Purchased merchandise from Wright Company for $11,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1.
Jul.		2		Sold merchandise to Lee Co. for $3,400 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $2,040.
Jul.		3		Paid $1,125 cash for freight charges on the purchase of July 1.
Jul.		8		Sold merchandise that had cost $4,000 for $6,700 cash.
Jul.		9		Purchased merchandise from Lane Co. for $4,700 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.
Jul.		11		Received a $900 credit memorandum from Lane Co. for the return of part of the merchandise purchased on July 9.
Jul.		12		Received the balance due from Lee Co. for the invoice dated July 2, net of the discount.
Jul.		16		Paid the balance due to Wright Company within the discount period.
Jul.		19		Sold merchandise that cost $4,300 to Martin Co. for $6,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19.
Jul.		21		Issued a $1,200 credit memorandum to Martin Co. for an allowance on goods sold on July 19.
Jul.		24		Paid Lane Co. the balance due, net of discount.
Jul.		30		Received the balance due from Martin Co. for the invoice dated July 19, net of discount.
Jul.		31		Sold merchandise that cost $7,200 to Lee Co. for $12,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.

General Journal tab - Journalize the merchandising transactions. 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 General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits.

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.

General Journal General Ledger Schedule of Trial BalanceRceivables Schedule of Payables Income Statement Impact on Income Requirement 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 Cash Merchandise inventory Date Debit Credit Balance Date Debit Credit Balance O. Jul 01 28,500 Jul 01 9,000 Common stock Date Jul 01 O. Debit Credit Balance 37,500 General Journal Trial Balance> Schedule of Schedule ofIncome Impact on Statement Income General Requirement urnal General Ledger Trial Balance Receivables Payables Prepare a multiple-step income statement through the calculation of gross profit. Ryan's Company Partial Income Statement For the Month Ended July 31, 2017 0 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. Increase (decrease) to income Impact on income July 1) Purchased merchandise from Wright Company for $11,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1 July 2) Sold merchandise to Lee Co. for $3,400 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2 July 2) The cost of the merchandise sold to Lee Co. was $2,040 July 3) Paid $1,125 cash for freight charges on the purchase of July 1 000: Increases net income 000: Decreases net income 000: No impact on income e purchase000: July 8) Sold merchandise for $6,700 cash July 8) The cost of the merchandise sold was $4,000 July 9) Purchased merchandise from Lane Co. for $4,700 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9 July 11) Received a $900 credit memorandum from Lane Co for the return of part of the merchandise purchased on July July 12) Received the balance due from Lee Co. for the invoice dated July 2, net of the discount. July 16) Paid the balance due to Wright Company within the