Reference no: EM132430519
Question - Ivanhoe Company commenced operations on July 1. Ivanhoe Company uses a periodic inventory system. During July, Ivanhoe Company was involved in the following transactions and events:
July 2 Purchased $14,200 of merchandise from Suppliers Inc. on account, terms 2/10, n/30, FOB shipping point.
July 3 Returned $1,200 of merchandise to Suppliers Inc. as it was damaged. Received a credit on account from Suppliers.
July 4 Paid $600 of freight costs on July 2 shipment.
July 8 Sold merchandise for $2,500 cash.
July 11 Paid Suppliers Inc. the full amount owing.
July 15 Sold merchandise for $7,000 on account, 1/10, n/30, FOB shipping point.
July 25 Received full payment for the merchandise sold on July 15.
July 31 Ivanhoe did a physical count and determined there was $10,100 of inventory on hand.
Required -
a. Record the transactions in Ivanhoe Company's books.
b. Make a partial multiple-step income statement, up to gross profit, for the month of July 2017.