Prepare journal entries to record the following merchandising transactions of Cabelas, 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 PayableBoden.

July		1		Purchased merchandise from Boden Company for $6,700 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1.
		2		Sold merchandise to Creek Co. for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $558.
		3		Paid $120 cash for freight charges on the purchase of July 1.
		8		Sold merchandise that had cost $2,000 for $2,400 cash.
		9		Purchased merchandise from Leight Co. for $2,600 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.
		11		Returned $600 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 $5,500 to Creek Co. for $7,500 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.

Journal entry worksheet

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• Purchased merchandise from Boden Company for $6,700 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
July 01

• Paid $120 cash for freight charges on the purchase of July 1.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
July 03

• Record sale of merchandise for $2,400 cash.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
July 08

• Record cost of merchandise sold, $2,000.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
July 08

• Purchased merchandise from Leight Co. for $2,600 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
July 09

• Paid the balance due to Boden Company within the discount period.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
July 16

• 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.

Date	General Journal	Debit	Credit
July 21

• Paid Leight Co. the balance due, net of discount.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
July 24

• 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