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 $1,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $542. July 3 Paid $140 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 $2,400 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $400 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 $1,200 to Art Company 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 $300 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 $6,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. View transaction list View journal entry worksheet No Date General Journal 1 July 01 Merchandise inventory Accounts payable-Boden 2 July 02 Accounts receivable-Creek Sales Debit Credit 6,500 6,500 1,000 1,000 3 July 02 Cost of goods sold 542 Merchandise inventory 542 4 July 03 Merchandise inventory Cash 140 140 5 July 08 Cash Sales 2,200 2,200 6 July 08 Cost of goods sold 1,800 Merchandise inventory 1,800 7 July 09 Merchandise inventory 2,400 Accounts payable-Leight 2,400 8 July 11 Accounts payable-Leight 400 Merchandise inventory 400 The records of Alaska Company provide the following information for the year ended December 31. At Cost At Retail Beginning inventory, January 1 Cost of goods purchased Sales $ 471,950 3,708,516 $ 927,750 6,279,950 5,501,700 45,200 Sales returns Required: 1. Use the retail inventory method to estimate the company's year-end inventory at cost. 2. A year-end physical inventory at retail prices yields a total inventory of $1,681,800. Prepare a calculation showing the company's loss from shrinkage at cost and at retail. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the retail inventory method to estimate the company's year-end inventory at cost. (Round your ratio calculations to 2 decimal places. (i.e. 10.15%)) At Cost Cost-to-Retail Ratio At Retail Beginning inventory $ 471,950 $ 927,750 Cost of goods purchased $ 3,708,516 4,180,466 6,279,950 $ 7,207,700 Net sales at retail