Journalize the following transactions for Armour Inc. Oct. 7 Sold merchandise on credit to Rondo Distributors, for $1,200, terms n/30. The cost of the merchandise was $720. 8 Purchased merchandise, $10,000, terms FOB shipping point, 2/15, n/30, with prepaid freight charges of $525 added to the invoice. Journalize the transactions above using the periodic inventory system. If an amount box does not require an entry, leave it blank. Oct. 7 Oct. 8 Journalize the transactions above using the perpetual inventory system. Oct. 7 - Sale Cost Oct. 8

Explanation:

The journal entries are as follows

On October 7

Under periodic inventory

Account receivable $1,200

        To Sales revenue $1,200

(Being the sales revenue on credit basis is recorded)

Under perpetual inventory

Accounts receivable A/c Dr $1,200

             To Sales revenue A/c $1,200

(Being the sales revenue on credit basis is recorded)

Cost of goods sold A/c Dr $720

         To Merchandise inventory A/c $720

(Being the merchandise is sold at cost)

On October 8

Under periodic inventory

Purchase $10,000

Freight in $525

      To Account payable $10,525

(Being the purchase made on credit is recorded)

Under perpetual inventory

Merchandise inventory  $10,525

         To Account payable  $10,525

(Being the purchase made on credit is recorded)

its kinda hard to answer this when we dont have all the information that we need.

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.