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.

Prepare journal entries to record the following merchandising transactions of Perry's, which uses the perpetual inventory system and the gross method. Prepare a multiple-step income statement through the calculation of gross profit. 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