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3 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. decreto income imptomi July 1) Purchased merchandise from Turner Company for $11,800 under credit terms of 1/15, 130, FOB shipping point. No impact on income invoice dated July 1 July 2) Sold merchandise to Hall Company for $3,800 under credit terms of 2/10, 1/60. FOB shipping point invoice dated No impact on Income July 2 July 2) The cost of the merchandise sold to Hall Company Increases net income was $2.280 July 3) Paid $1,285 cash for freight charges on the purchase Decreases net income of July 1 July 8) Sold merchandise for $7,500 cash No impact on income + July 8) The cost of the merchandise sold was $4,500 Increases net income July 9) Purchased merchandise from Clinton Company for $5,100 under credit terms of 2/15. 1/60, FOB destination Decreases net income invoice dated July 9, July 11) Received a $1.000 credit memorandum from Clinton Company for the return of part of the merchandise No impact on income purchased on July 9, July 12) Received the balance due from Hall Company for Decreases not income the invoice dated July 2. net of the discount purchased on July 9. July 12) Received the balance due from Hall Company for the invoice dated July 2, net of the discount Decreases not income July 16) Paid the balance due to Turner Company within the discount period. No impact on income July 19) Sold merchandise to Thompson Company for $7,000 under credit terms of 2/15, 1/60, FOB shipping point, Increases net income invoice dated July 19. July 19) The cost of the merchandise sold to Thompson Company was $4,900 Decreases net income July 21) Issued a $1,400 credit memorandum to Thompson Decreases net income Company for an allowance on goods sold on July 19. July 24) Paid Clinton Company the balance due, net of discount Jul 30) Received the balance due from Thompson Company for the invoice dated July 19, net of discount July 31) Sold merchandise to Hall Company for $12,800 under credit terms of 2/10 n/60, FOB shipping point, invoice dated July 31 July 31) The cost of the merchandise sold to Hall Company was $7.700 Total gross profit $ 0

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