Prepare journal entries to record the following merchandising transactions of Carter'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-Mannion. Purchased merchandise from Mannion Company for $9,800 under credit terms of 1/15, 1/30, FOB shipping on invoice dated July 1. Sold merchandise to Gonzalez Co. for $2,800 under credit terms of 2/10, 1/60, FOB shipping point, Invoice dated July 2. The merchandise had cost $1,680. Jul. 3 Paid $885 cash for freight charges on the purchase of July 1. Jul. 8 Sold merchandise that had cost $3,300 for $5,500 cash. Jul. Purchased merchandise from Knight Co. for $4, 100 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Jul. 11 Returned $800 of merchandise purchased on July 9 from Knight Co., and debited its account payable for that amount. Jul. 12 Received the balance due from Gonzalez Co. for the invoice dated July 2, net of the discount. Jul. 16 Paid the balance due to Mannion Company within the discount period. Jul. 19 Sold merchandise that cost $3,500 to Lane Co. for $5,000 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. Jul. 21 Gave a price reduction (allowance) of $1,000 to Lane Co. for merchandise sold on July 19, and credited Lane's accounts receivable for that amount. Jul. 24 Paid Knight Co. the balance due, net of discount. Jul. 30 Received the balance due from Lane Co. for the invoice dated July 19, net of discount. Jul. 31 Sold merchandise that cost $6,500 to Gonzalez Co. for $10,800 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