Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the gross method. July 1 Purchased merchandise froe Boden Company for $7, eee under credit terms of 2/15,n/30, FOB shipping point, invoice dated July 1 . July 2 Sold merchandise to Creek Company for 596e under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2 . The merchandise had cost $583. July 3 Paid $115 cash for freight charges on the purchase of July 1 . July 8 sold merchandise that had cost $2,300 for $2,700 cash. July 9 Purchased merchandise from Leight Company for $2,60e under credit terms of 2/15,n/60, FOB destination, invoice dated July 9. July 11 Returned $600 of merchandise purchased on July 9 from Leight Company and debited its account payable for that anount. July 12 Received the balance due fron Creek Conpany 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 $1,260 to Art Conpany for $1,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of 5300 to Art Company for merchandise sold on July 19 and credited Art's accounts receivable for that anount. July 24 Paid Leight Company the balance due, net of discount. July 30 Received the balance due fron Art Company for the invoice dated July 19 , net of discount. July 31 sold merchandise that cost $5,860 to Creek Conpany for $7,400 under credit terms of 2/10,n/60, FOB shipping point, invoice dated July 31. Journal entry worksheet Purchased merchandise from Boden Company for $7,000 under credit terms of 2/15,n/30,FOB shipping point, invoice dated July 1 . Note; Enter debits before credits