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.$)$

$10$

points

eBook

Print

References

July $1$ Purchased merchandise from Boden Company for $$6,000$ under credit terms of $\frac{1}{15},\frac{n}{30},$ FOB shipping point, invoice dated July $1.$

July $2$ Sold merchandise to Creek Company for $$900$ under credit terms of $\frac{2}{10},\frac{n}{60},$ F$0$B shipping point, invoice dated July $2.$ The merchandise had cost $$500.$

July $3$ Paid $$125$ cash for freight charges on the purchase of July $1.$

July $8$ Sold merchandise that had cost $$1,300$ for $$1,700$ cash.

July $9$ Purchased merchandise from Leight Company for $$2,200$ under credit terms of $\frac{2}{15},\frac{n}{60},$ FOB destination, invoice dated July $9.$

July $11$ Returned $$200$ of merchandise purchased on July $9$ from Leight Company and debited its account payable for that amount

July $12$ Receivid 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 $\frac{2}{15},\frac{n}{60},$ F$0$B shipping point, invoice dated July $19.$

July $21$ Gave a price reduction $($allowance$)$ of $$100$ 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 $$4,800$ to Creek Company for $$7,000$ under credit terms of $\frac{2}{10},\frac{n}{60},$ F$0$B shipping point, invoice dated July $31.$

$\backslash$table$[[$Requirement$,\backslash$table$[[$General$],[$Journal$]],\backslash$table$[[$General$],[$Ledger$]],$Trial Balance,$\backslash$table$[[$Schedule of$],[$Receivables$]],\backslash$table$[[$Schedule of$],[$Payables$]],\backslash$table$[[$Income$],[$Statement$]],\backslash$table$[[$Impact on$],[$Income$]]]]$

Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries.