3 Prepare journal entries to record the following merchandising transactions of Cabela'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 Boden July Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, 130, FOB shipping point, Invoice dated July 1. 2 Sold merchandise to Creek Co. for $900 under Credit terms of 2/10, 1/6, FOB shipping point. Invoice dated July 2 The merchandise had cost $500. 3 Paid $125 cash for freight charges on the purchase of July 1. Sald merchandise that had cost $1,300 for $1.700 cash, 9 Purchased merchandise from Leight Co. for $2.2ee under credit terms of 2/15, 1/6, FOB destination, Invoice dated July 9. 11 Returned $200 of merchandise purchased on July 9 from Ledght Co. and debited its account payable for that mount 12 Received the balance due from Creek Co. for the voice dated July 2, net of the discount 16 Pald the balance due to Boden Company within the discount period 19. sold merchandise the cost see to AHL Co. To $1,200 under credit ter of 2/15, 1/6. FOB shipping point invoice cated 21 Gave price reduction allowance) $100 to Art u. tor range old on July 19 and credited Artis accounts receivable for that amount 24 Baie teight Co the balance dues het of discount 30 Received the balance due for Art cu. for the modely 1 het of discount Sold merchandise that $4.8 ta creek 5. de credit 21. nude. roo shipping point, invoice for the worl 13 WODURCHETTE No Dale July 01 General Journal Debit Merchandise inventory Accounts receivable Boden Credit 0.35 points 6,000 6.000 2 July 02 Accounts receivable Creek Sales 900 900 July 02 Cost of goods sold Merchandise inventory 500 500 4 July 03 Merchandise inventory Cash 125 Oo 125 5 July 08 Cash Sales 1,700 1,700 6 July 08 Cost of goods sold Merchandise inventory 1.300 1,300 July 09 Merchandise inventory Accounts payable-Leight 2.200 2.200 8 July 11 Accounts payable-Leight Merchand se inventory 200 OOOOOOOOOOO 200 July 12 Cash Sales discounts Accounts receivable Creek 18 900 10 July 10 8.000 Accounts payable Boden Cash Merchandise inventory 3,040 rect for the work 9 July 12 Cash Sales discounts Accounts receivable Creek 882 18 900 10 July 16 6,000 Accounts payable Boden Cash Merchandise inventory 5,040 80 11 July 19 Accounts receivable Art Sales 1,200 > O 1,200 12 July 10 Cost of goods sold Merchandise inventory olo 800 800 o 13 July 21 Sales returns and allowances Accounts receivable-Art 2003 200 14 July 24 2.000 Accounts receivable-Leight Cash Merchandise inventory 1.040 40 als 15 July 30 Cash Sales discounts Accounts receivable Art QO Ooo 980 % 20$ 1.000 16 July 31 Accounts receivable-Creek Sales 7.000 7.000 17 July 3 Cost of goods sold Merchandise inventory 4.800 4.800