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.

Impact on income Increase $($decrease$)$ to income

July $1)$ Purchased merchandise from Griffin Company for $$10,400$ under credit terms of $1/15,$ n$/30,$ FOB shipping point, invoice dated July $1.$ No impact on incomeselected answer correct not attempted

July $2)$ Sold merchandise to Wilson Company for $$3,100$ under credit terms of $2/10,$ n$/60,$ FOB shipping point, invoice dated July $2.$ Increases net incomeselected answer correct $$3,100$selected answer correct

July $2)$ The cost of the merchandise sold to Wilson Company was $$1,860.$ No impact on incomeselected answer incorrect not attempted

July $3)$ Paid $$1,005$ cash for freight charges on the purchase of July $1.$ No impact on incomeselected answer correct not attempted

July $8)$ Sold merchandise for $$6,100$ cash. Increases net incomeselected answer correct $6,100$selected answer correct

July $8)$ The cost of the merchandise sold was $$3,700.$ No impact on incomeselected answer incorrect not attempted

July $9)$ Purchased merchandise from Lee Company for $$4,400$ under credit terms of $2/15,$ n$/60,$ FOB destination, invoice dated July $9.$ No impact on incomeselected answer correct not attempted

July $11)$ Received a $$900$ credit memorandum from Lee Company for the return of part of the merchandise purchased on July $9.$

No impact on incomeselected answer correct not attempted

July $12)$ Received the balance due from Wilson Company for the invoice dated July $2,$ net of the discount.

Increases net incomeselected answer incorrect not attempted

July $16)$ Paid the balance due to Griffin Company within the discount period.

not attempted not attempted

July $19)$ Sold merchandise to Garcia Company for $$5,600$ under credit terms of $2/15,$ n$/60,$ FOB shipping point, invoice dated July $19.$ Increases net incomeselected answer correct $5,600$selected answer correct

July $19)$ The cost of the merchandise sold to Garcia Company was $$3,900.$

No impact on incomeselected answer incorrect not attempted

July $21)$ Issued a $$1,100$ credit memorandum to Garcia Company for an allowance on goods sold on July $19.$ Decreases net incomeselected answer correct $1,100$selected answer incorrect

July $24)$ Paid Lee Company the balance due, net of discount.

No impact on incomeselected answer correct not attempted

July $30)$ Received the balance due from Garcia Company for the invoice dated July $19,$ net of discount. No impact on incomeselected answer incorrect not attempted

July $31)$ Sold merchandise to Wilson Company for $$11,400$ under credit terms of $2/10,$ n$/60,$ FOB shipping point, invoice dated July $31.$ Increases net incomeselected answer correct $11,400$selected answer correct

July $31)$ The cost of the merchandise sold to Wilson Company was $$6,800.$ No impact on incomeselected answer incorrect not attempted

Total gross profitCh $04$ GL P$4-1$a i

$15$

points

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