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 $6,000 under credit terms of 1/15, 1/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, 1/60, 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. 8 Sold merchandise that had cost $1,300 for $1,700 cash. 9 Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. 11 Returned $208 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 $800 to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. 21 Gave a price reduction (allowance) of $100 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 fron Art Co. for the invoice dated July 19, net of discount. 31 Sold merchandise that cost $4,800 to Creek Co. for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Journal entry worksheet Record the cost of merchandise sold, $500. Note: Enter debits before credits Date July 02 General Journal Debit Credit Journal entry worksheet Paid $125 cash for freight charges on the purchase of July 1. Note: Enter debits before credits. General Journal Date July 03 Debit Credit Record sale of merchandise for $1,700 cash. Note: Enter debits before credits. General Journal Date July 08 Debit Credit Record cost of merchandise sold, $1,300. Note: Enter debits before credits. Date General Journal Debit Credit July 08 Purchased merchandise from Leight Co. for $2,200 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 1 2 3 5 6 7 17 > Returned $200 of merchandise purchased on July 9 from Leight Co., and debited its account payable for that amount. Note: Enter debits before credits. Date General Journal Debit Credit July 11 Paid the balance due to Boden Company within the discount period. Note: Enter debits before credits. Date General Journal Debit Credit July 16 Received the balance due from Art Co. for the invoice dated July 19, net of discount. Note: Enter debits before credits. Date General Journal Debit Credit July 30 .... ... 10 11 12 13 14 15 16 17 Sold merchandise to Creek Co. for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Note: Enter debits before credits. Date "General Journal Debit Credit July 31
