Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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,sen under credit terms of 2/15, 1/30, For shipping point, Invoice dated 2 sold merchandise to Creek Co. for 39se under credit terms of 2/10, 1/60, FOB shipping point, invoice dated July 2. The merchandise had cost $542. 3 Paid $135 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,800 for $2,200 cash. 9 Purchased merchandise from Leight Co. for $2,500 under credit terms of 2/15, 1/68, FOB destination, Invoice dated July 9. 11 Returned 5500 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 $1,200 to Art Co. for $1,000 under credit terns of 2/15, 1/60, FOB shipping point, Invoice dated July 19 21 lave price reduction Collowance) of 5300 to Ant Co. for merchandiser sold on July 19 and credited Art's accounts receivable for that amount. 24 Paid Leight co the balance due, nt of discount. 30 Received the balance due frou Art Co. for the invoice dated July 19, net of discount 31 Seld merchandise that cost 55,300 to Creek Co. for $2,300 under credit term of 2/10, w/00, F08 Shipping point, Invoice dated July 31. View transaction list Journal entry worksheet 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. Notes Enter:debits before credits Date General Joumat Debit Credit July 01 Record Guy Gal View General journal Prey Nyt

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Information for Decisions

Authors: John J. Wild

8th edition

125953300X, 978-1259533006

More Books

Students also viewed these Accounting questions

Question

Distinguish between apperception and perception.

Answered: 1 week ago