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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
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 $6,200 under credit terms of 2/15, 1/30, POB shipping point, July 2 sold merchandise to Creek Company for $950 under credit terms of 2/10, 1/60, POB shipping point, invoice dated July 2. The merchandise had cost $517. July 3 Paid $120 cash for freight charges on the purchase of July 1. July & Sold merchandise that had cost $1,500 for $1,900 cash. July Purchased merchandise from Leight Company for $2,900 under credit terns of 2/15, 1/60, POB destination, Invoice dated July 9. July 11 Returned $900 of merchandise purchased on July from Light Company and debited its account payable for that 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 $800 to Act Company for $1,200 under credit terna of 2/15, 1/60. ron shipping point, invoice dated July 19. July 21 Cave a price reduction allowance) of $200 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 $5,000 to Creek Company for $6,800 under credit terms of 2/10, 1/60, POB shipping point, invoice dated July 31. amount
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