D1. Prepare Journal entries to record the following merchandising transactions of Sanchez's, which uses the perpetual Inventory systemand the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 In AccountsPayable-Lee.)July 1 Purchased merchandise from Lee Company for $9,400 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July1.July 2 Sold merchandise to Brown Company for $2,600 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2.The merchandise had cost $1,560.July 3 Paid $885 cash for freight charges on the purchase of July 1.July 8 Sold merchandise that had cost $3,100 for $5,100 cash.July 9 Purchased merchandise from Carter Company for $3,900 under credit terms of 2/15, n/60, FOB destination, invoice dated July9.July 11 Returned $800 of merchandise purchased on July 9 from Carter Company and debited its account payable for that amount.July 12 Received the balance due from Brown Company for the invoice dated July 2, net of the discount.July 16 Paid the balance due to Lee Company within the discount period.July 19 Sold merchandise that cost $3,200 to Clark Company for $4,600 under credit terms of 2/15, n/60, FOB shipping point, invoicedated July 19.July 21 Gave a price reduction (allowance) of $900 to Clark Company for merchandise sold on July 19 and credited Clark's accountsreceivable for that amount.July 24 Paid Carter Company the balance due, net of discount.July 30 Received the balance due from Clark Company for the invoice dated July 19, net of discount.July 31 Sold merchandise that cost $6,200 to Brown Company for $10,400 under credit terms of 2/10, n/60, FOB shipping point,invoice dated July 31. RequirementGeneralJournalGeneralLedgerTrial BalanceJuly 2) Sold merchandise to Brown Company for $2,600under credit terms of 2/10, n/60, FOB shipping point, invoicedated July 2.July 1) Purchased merchandise from Lee Company for$9.400 under credit terms of 1/15, n/30, FOB shipping point, No impact on incomeinvoice dated July 1.July 2) The cost of the merchandise sold to Brown Companywas $1,560.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 onthe partial income statement.July 3) Paid $805 cash for freight charges on the purchase ofJuly 1.July 8) Sold merchandise for $5,100 cash.July 8) The cost of the merchandise sold was $3,100.July 9) Purchased merchandise from Carter Company for$3,900 under credit terms of 2/15, n/60, FOB destination,invoice dated July 9.July 11) Received a $800 credit memorandum from CarterCompany for the return of part of the merchandisepurchased on July 9.July 16) Paid the balance due to Lee Company within thediscount period.July 19) Sold merchandise to Clark Company for $4,600under credit terms of 2/15, n/60, FOB shipping point, invoicedated July 19.July 19) The cost of the merchandise sold to Clark Companywas $3,200.July 21) Issued a $900 credit memorandum to ClarkCompany for an allowance on goods sold on July 19.July 24) Paid Carter Company the balance due, net ofdiscount.July 30) Received the balance due from Clark Company forthe invoice dated July 19, net of discount.Schedule ofReceivablesJuly 31) Sold merchandise to Brown Company for $10,400under credit terms of 2/10, n/60, FOB shipping point, invoicedated July 31.July 31) The cost of the merchandise sold to BrownCompany was $6,200.Total gross profitJuly 12) Received the balance due from Brown Company for Decreases net incomethe invoice dated July 2, net of the discount.Impact on incomeIncreases net incomeDecreases net incomeNo impact on incomeIncreases net incomeSchedule ofPayablesDecreases net incomeNo impact on incomeNo impact on income< Income StatementIncrease(decrease) toincome$09IncomeStatement$Impact on Income02,600(1.560)05,100(3.100)00(86)Impact onIncome2,974

Name: D1. Prepare Journal entries to record the following merchandising tran
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Description: D1. Prepare Journal entries to record the following merchandising transactions of Sanchez's, which uses the perpetual Inventory systemand the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase