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 from Boden Company for $6,500 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Creek Company for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $542. July 3 Paid $135 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,800 for $2,200 cash. July 9 Purchased merchandise from Leight Company for $2,600 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 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 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 $5,300 to Creek Company for $7,100 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 17 > Purchased merchandise from Boden Company for $6,500 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. Note: Enter debits before credits. Date July 01 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 45678 Sold merchandise to Creek Company for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. Note: Enter debits before credits. Date July 02 > 17 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5678 17 > Record the cost of merchandise sold, $542. Note: Enter debits before credits. Date July 02 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5678 Paid $135 cash for freight charges on the purchase of July 1. Note: Enter debits before credits. Date July 03 17 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 17 > Record sale of merchandise for $2,200 cash. Note: Enter debits before credits. Date July 08 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 17 Record cost of merchandise sold, $1,800. Note: Enter debits before credits. Date July 08 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 17 > Purchased merchandise from Leight Company for $2,600 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Note: Enter debits before credits. Date July 09 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 17 Returned $600 of merchandise purchased on July 9 from Leight Company and debited its account payable for that amount. Note: Enter debits before credits. Date July 11 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 .... 456789 17 Received the balance due from Creek Company for the invoice dated July 2, net of the discount. Note: Enter debits before credits. Date July 12 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 .... 5 6 7 8 9 10 17 | > 10 Paid the balance due to Boden Company within the discount period. Note: Enter debits before credits. Date July 16 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 .... 6 7 8 9 10 11 17 Sold merchandise to Art Company for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. Note: Enter debits before credits. Date July 19 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 ... 7 8 9 10 Record cost of merchandise sold, $800. 11 12 17 14 ^ Note: Enter debits before credits. Date July 19 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 ... 8 9 10 11 12 13 17 > 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. Note: Enter debits before credits. Date July 21 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 ... 8 9 10 11 12 13 17 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. Note: Enter debits before credits. Date July 21 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 .... 9 10 11 12 13 14 17 > Paid Leight Company the balance due, net of discount. Note: Enter debits before credits. Date July 24 General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet > 1 ... 10 11 12 13 14 15 17 Received the balance due from Art Company for the invoice dated July 19, net of discount. Note: Enter debits before credits. Date July 30 General Journal Debit Credit Record entry Clear entry View general journal |> Journal entry worksheet < 1 ... 10 11 12 13 14 15 16 17 > Sold merchandise to Creek Company for $7,100 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Note: Enter debits before credits. Date July 31 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 ..... 10 11 12 13 14 15 16 17 Record cost of merchandise sold, $5,300. Note: Enter debits before credits. Date July 31 General Journal Debit Credit Record entry Clear entry View general journal