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 $$6,900$ under credit terms of $\frac{2}{15},\frac{n}{30},$ FOB shipping point,

invoice dated July $1.$

Sold merchandise to Creek Company for $$1,000$ under credit terms of $\frac{2}{10},\frac{n}{60},$ FOB shipping point, invoice dated

July $2.$ The merchandise had cost $$575.$

July $3$ Paid $$105$ cash for freight charges on the purchase of July $1.$

July $8$ Sold merchandise that had cost $$2,200$ for $$2,600$ cash.

Purchased merchandise from Leight Company for $$2,500$ under credit terms of $\frac{2}{15},\frac{n}{60},$ FOB destination, invoice

dated July $9.$

Returned $$500$ of merchandise purchased on July $9$ from Leight 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.

Sold merchandise that cost $$1,000$ to Art Company for $$1,500$ under credit terms of $\frac{2}{15},\frac{n}{60},$ FOB shipping

point, invoice dated July $19.$

Gave a price reduction $($allowance$)$ of $$250$ 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 $$5,700$ to Creek Company for $$6,800$ under credit terms of $\frac{2}{10},$ n$/60,$ FOB shipping

point, invoice dated July $31.$

Journal entry worksheet

Sold merchandise to Art Company for $$1,500$ under credit terms of $\frac{2}{15},$

n$/60,$ FOB shipping point, invoice dated July $19.$

Journal entry worksheet

Record cost of merchandise sold, $$1,000.$

Note: Enter debits before credits.

Journal entry worksheet

Note: Enter debits before credits.

Journal entry worksheet

Paid Leight Company the balance due, net of discount.

Note: Enter debits before credits.

Journal entry worksheet

Sold merchandise to Creek Company for $$6,800$ under credit terms of $\frac{2}{10},$

$\frac{n}{60},$ FOB shipping point, invoice dated July $31.$

Note: Enter debits before credits.