GL0401 - Based on Problem 4-1A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Sanchez'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 Payable-Lee.) Jul. Jul. Jul. Jul. Jul. 1 Purchased merchandise from Lee Company for $9,400 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Brown Co. for $2,600 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,560. 3 Paid $805 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $3,100 for $5,100 cash. 9 Purchased merchandise from Carter Co. for $3,900 under credit terms of 2/15, n/60, POB destination, invoice dated July 9. Jul. 11 Returned $800 of merchandise purchased on July 9 from Carter Co. and debited its account payable for that amount. Jul. 12 Received the balance due from Brown Co. for the invoice dated July 2, net of the discount. Jul. 16 Paid the balance due to Lee Company within the discount period. Jul. 19 Sold merchandise that cost $3,200 to Clark Co. for $4,600 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. Jul. 21 Gave a price reduction (allowance) of $900 to Clark Co. for merchandise sold on July 19 and credited Clark's accounts receivable for that amount. Jul. 24 Paid Carter Co. the balance due, net of discount. Jul. 30 Received the balance due from Clark Co. for the invoice dated July 19, net of discount. Jul. 31 Sold merchandise that cost $6,200 to Brown Co. for $10,400 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income