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. 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 $6,300 under credit terms of 2/15, n/30, F0B shipping point,
invoice dated July 1.
July 2 Sold merchandise to Creek Company for $1,000 under credit terms of 210,n60, F0B shipping point, invoice
dated July 2. The merchandise had cost $525.
July 3 Paid $125 cash for freight charges on the purchase of July 1.
July 8 Sold merchandise that had cost $1,600 for $2,000 cash.
July 9 Purchased merchandise from Leight Company for $2,400 under credit terms of 215,n60, F0B 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 $1,000 to Art Company for $1,500 under credit terms of 215, n/60, F0B shipping
point, invoice dated July 19.
July 21 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 $5,100 to Creek Company for $7,100 under credit terms of 210, n/60, F0B shipping
point, invoice dated July 31.
image text in transcribed

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

Step: 3

blur-text-image

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

Cost Accounting Principles And Applications

Authors: Horace R. Brock, Linda Herrington

6th Edition

0028034287, 978-0028034287

More Books

Students also viewed these Accounting questions

Question

What are the differences between dismissal and discharge?

Answered: 1 week ago