1 Prepare journal entries to record the following merchandising transactions of Cabelo's, which uses the perpetual Inventory system and the gross method July 1 Purchased merchandise from Boden Company for 06,900 under credit terms of 2/15, 1/30, TOB shipping point, invoice dated July 1. July 2 sold merchandise to Creek Company for $950 under credit terms of 2/10, 1/60, Os shipping point, involon dated July 2. The merchandise had coat $575. July 3 Paid $115 cash for freight charges on the purchase of July 1. July 8 sold merchandise that had cost $2,200 for $2,600 cash. July Purchased merchandise from Leight Company for $2,500 ander credit terms of 2/15, n/60. FOB destination, Invoice dated July 9. July 11 Returned 500 of merchandise purchased on July 9 from Leight Company and debited its account payable for that mount. July 12 Received the balance due from Creek Company for the Invoice dated July 2, net of the discount. July 16 Paid the balance due to Hoden Company within the discount period. July 19 Sold merchandise that cont $1,200 to Art Company for $1,800 under credit terms of 2/15, 1/60, POB shipping point, invoice dated July 19. July 21 Gave a price reduction allowance) of $300 to Art Company for merchandise sold on July 19 and credited Art accounts receivable for that amount. July 24 Paid Leight Company the balance due, net of discount. July 30 Received the balance due from Art Company for the invoice dated July 19, net of discount. July 31 sold merchandise that coat 55,700 to Creek Company for $7,200 under credit terms of 2/10, 1/60, POB whipping point, invoice dated July 31. View transaction list View journal entry worksheet No Date Credit Dobit 6,900 1 General Journal Merchandise inventory Accounts payable Art July 01 6.900