$4$ Homework

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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 $1$ Purchased merchandise from Boden Company for $$6,100$ under credit terms of $\frac{2}{15},\frac{n}{30},$ FOB shipping point, invoice dated July $1.$

July $2$ Sold merchandise to Creek Company for $$950$ under credit terms of $\frac{2}{10},\frac{n}{60},$ FOB shipping point, invoice dated July $2.$ The merchandise had cost $$508.$

July $3$ Paid $$120$ cash for freight charges on the purchase of July $1.$

July $8$ Sold merchandise that had cost $$1,400$ for $$1,800$ cash.

July $9$ Purchased merchandise from Leight Company for $$2,300$ under credit terms of $\frac{2}{15},\frac{n}{60},$ FOB destination; invoice dated July $9.$

July $11$ Returned $$300$ of merchandise purchased on July $9$ from Leight Company and debited its account payable for that amount.

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 Boden Company within the discount period.

July $19$ Sold merchandise that cost $$800$ to Art Company for $$1,200$ under credit terms of $\frac{2}{15},$ n$/60,$ FOB shipping point, invoice dated July $19.$

July $21$ Gave a price reduction $($allowance$)$ of $$200$ to Art Company for merchandise sold on July $19$ and credited Art's 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 cost $$4,900$ to Creek Company for $$6,800$ under credit terms of $\frac{2}{10},$ n$/60,$ FOB shipping point, invoice dated July $31.$

Journal entry worksheet

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$17$

Purchased merchandise from Boden Company for $$6,100$ under credit terms of J$/15$ n$/30$ FOR chinninn nnint invnire datod Tulv $1$

$1$ of $1$

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