Tonia Company engaged in the following transactions in July 20xx:

July 1 Sold merchandise to Su Long on credit, terms n/30, FOB shipping point, $4,200 (cost, $2,520).

3 Purchased merchandise on credit from Angier Company, terms n/30, FOB shipping point, $7,600.

5 Paid Mix Freight for freight charges on merchandise received, $580.

uly 8 Purchased merchandise on credit from Exto Supply Company, terms n/30, FOB shipping point, $7,200, which includes $400 freight costs paid by Exto Supply Company.
12 Returned some of the merchandise purchased on July 3 for credit, $1,200.
15 Sold merchandise on credit to Pete Smith, terms n/30, FOB shipping point, $2,400 (cost, $1,440).
17 Sold merchandise for cash, $2,000 (cost, $1,200).
18 Accepted for full credit a return from Su Long and returned merchandise to inventory, $400 (cost, $240).
24 Paid Angier Company for purchase of July 3 less return of July 12.
25 Received check from Su Long for July 1 purchase less the return on July 18.
Required 1. Prepare entries in journal form (refer to the review problem) to record the transactions, assuming use of the perpetual inventory system.
2. User Insight: In their published financial statements, most companies call the first line on their income statement “net sales.” Other companies simply say “sales.” Do you think these terms are equivalent and comparable?
What would be the content of “net sales”? What might be the reason a company would use “sales” instead of “net sales”?
Merchandising Income Statement: Periodic Inventory System