Question
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
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, ron shipping point, invoice dated July 1. July 2 Sold merchandise to Creek Company for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $542. July 3 Paid $130 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 $2,800 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $800 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 $1,000 to Art Company for $1,500 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 July 24 July 30 July 31 Gave a price reduction (allowance) of $250 to Art Company for merchandise sold on July 19 and credited Art's accounts receivable for that amount.. Paid Leight Company the balance due, net of discount. Received the balance due from Art Company for the invoice dated July 19, net of discount. Sold merchandise that cost $5,300 to Creek Company for $7,500 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.
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