Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please solve clearly and explain Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the gross

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Please solve clearly and explain

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 $6,300 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $525. 3 Paid $130 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,600 for $2,000 cash. 9 Purchased merchandise from Leight Co. for $2,800 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. 11 Returned $800 of merchandise purchased on July 9 from Leight Co. and debited its account payable for that amount. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. 16 Paid the balance due to Boden Company within the discount period. 19 Sold merchandise that cost $1,000 to Art Co. for $1,500 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. 21 Gave a price reduction (allowance) of $250 to Art Co. for merchandise sold on July 19 and credited Art's accounts receivable for that amount. 24 Paid Leight Co. the balance due, net of discount. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount. 31 Sold merchandise that cost $5,100 to Creek Co. for $6,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Journal entry worksheet 12 3 4 5 6 7 8 ..... 17 > Purchased merchandise from Boden Company for $6,300 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. Note: Enter debits before credits. Date General Journal July 01 Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the cost of merchandise sold, $525 Note: Enter debits before credits. General Journal Debit Credit Date July 02 Record entry Clear entry View general journal Journal entry worksheet Paid $130 cash for freight charges on the purchase of July 1. Note: Enter debits before credits. Date General Journal July 03 Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record sale of merchandise for $2,000 cash. Note: Enter debits before credits. General Journal Debit Credit Date July 08 Record entry Clear entry View general journal Journal entry worksheet Record cost of merchandise sold, $1,600. Note: Enter debits before credits. Date General Journal July 08 Debit Credit Record entry Clear entry View general journal Journal entry worksheet IIII. Purchased merchandise from Leight Co. for $2,800 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Note: Enter debits before credits. General Journal Debit Credit Date July 09 Record entry Clear entry View general journal Journal entry worksheet 2 3 4 5 6 7 8 17 Returned $800 of merchandise purchased on July 9 from Leight Co. and debited its account payable for that amount. Note: Enter debits before credits. General Journal Debit Credit Date July 11 Record entry Clear entry View general journal Journal entry worksheet Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. Note: Enter debits before credits. General Journal Debit Credit Date July 12 Record entry Clear entry View general journal Journal entry worksheet Sold merchandise to Art Co. for $1,500 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. Note: Enter debits before credits. General Journal Debit Credit Date July 19 Record entry Clear entry View general journal Journal entry worksheet Gave a price reduction (allowance) of $250 to Art Co. for merchandise sold on July 19 and credited Art's accounts receivable for that amount. Note: Enter debits before credits. General Journal Debit Credit Date July 21 Record entry Clear entry View general journal Journal entry worksheet Sold merchandise to Creek Co. for $6,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Note: Enter debits before credits. Date General Journal July 31 Debit Credit Record entry Clear entry View general journal Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Capital Market Instruments Analysis And Valuation

Authors: M. Choudhry, D. Joannas, G. Landuyt, R. Pereira, R. Pienaar

3rd Edition

0230576036, 9780230576032

More Books

Students also viewed these Accounting questions

Question

Always show respect for the other person or persons.

Answered: 1 week ago