Prepare Income Statement and journal entry August 1 Purchased merchandise from Ryan Company for $9,700 under credit

Prepare Income Statement and journal entry 

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August 1 Purchased merchandise from Ryan Company for $9,700 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. August 5 Sold merchandise to Lane Corporation for $6,300 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $3,800. August 8 Purchaned merchandise from Gonzalez Corporation for $5,840 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8.1 August 9 Paid $725 cash for shipping charges related to the August 5 sale to Lane Corporation August 10 Lane returned merchandise from the August 5 sale that had cost Martin's $200 and was sold for $400. The merchandise was restored to inventory. August 12 After negotiations with Gonzalez Corporation concerning problems with the purchases on August 8, Martin's received a credit memorandum from Gonzalez granting a price reduction of $800 off the $5,840 of goods purchased. August 14 At Ryan's request, Martin's paid $300 cash for freight charges on the August 1 purchase, reducing the amount oved to Ryan. August 15 Received balance due from Lane Corporation for the August 5 sale less the return on August 10. August 18 Paid the amount due Gonzalez Corporation for the August 8 purchase less the price allowance from August 12. August 19 Sold merchandise to King Company for $4,000 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $2,000. August 22 King requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Martin's sent King a $400 credit memorandun toward the $4,000 invoice to resolve the issue. August 29 Received King's cash payment for the amount due from the August 19 sale less the price allowance from August 22. August 30 Paid Ryan Company the amount due from the August 1 purchase. Requirement General Journal General Ledger Trial Balance Journal entry worksheet Schedule of Schedule of Receivables Payables Income Statement Impact on Income Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries. View transaction list August 1 Purchased merchandise from Ryan Company for $9,700 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. August 5 Sold merchandise to Lane Corporation for $6,300 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $3,800. August 8 Purchaned merchandise from Gonzalez Corporation for $5,840 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8.1 August 9 Paid $725 cash for shipping charges related to the August 5 sale to Lane Corporation August 10 Lane returned merchandise from the August 5 sale that had cost Martin's $200 and was sold for $400. The merchandise was restored to inventory. August 12 After negotiations with Gonzalez Corporation concerning problems with the purchases on August 8, Martin's received a credit memorandum from Gonzalez granting a price reduction of $800 off the $5,840 of goods purchased. August 14 At Ryan's request, Martin's paid $300 cash for freight charges on the August 1 purchase, reducing the amount oved to Ryan. August 15 Received balance due from Lane Corporation for the August 5 sale less the return on August 10. August 18 Paid the amount due Gonzalez Corporation for the August 8 purchase less the price allowance from August 12. August 19 Sold merchandise to King Company for $4,000 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $2,000. August 22 King requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Martin's sent King a $400 credit memorandun toward the $4,000 invoice to resolve the issue. August 29 Received King's cash payment for the amount due from the August 19 sale less the price allowance from August 22. August 30 Paid Ryan Company the amount due from the August 1 purchase. Requirement General Journal General Ledger Trial Balance Journal entry worksheet Schedule of Schedule of Receivables Payables Income Statement Impact on Income Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries. View transaction list