Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the gross method. Juty 1 Purchased nerchandise fron Boden Conpany for 56,200 under credit terns of 2/15, n/30, FoB shipping point, invoice dated July 1. July 2 Sold nerchandise to Creek Company for $900 under credit terms of 2/10, n/6e, Fos shipping point, invotce dated July 2 . The nerchandise 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. Juty 9 Purchased merchandise from Leight Conpany for $2,700 under credit terms of 2/15, n/60, F0B destination, invoice dated July 9. Juty 11 Returned $700 of nerchandise purchesed on Juty 9 from Leight Company and debited its account payable for that anount. Juty 12 Received the balance due fron Creek Company for the invoice dated July 2 , net of the discount, July 16 Paid the balance due to Boden Conpany within the discount period. July 19 sold merchandise that cost $1,000 to Art Company for $1,508 under credit teras of 2/15, N/60, Foe shipping point, invoice dated July 19. Juty 21 Gave a price reduction (allowance) of $250 to Art Company for nerchandise sold on July 19 and credited Art's accounts receivable for that anount. Juty 24 Pasd Leight Conpany the balance due, net of discount. Juty 30 Received the batance due from Art Company for the invoice dated Juty 19 , net of discount. Juty 31 Sold aerchandise that cast 55,000 to Creek Company for $7,200 under credit terns of 2/16, n/60, Fob shipping point, involee dated July 31 . Journal entry worksheet 2 3 4 5 6 7 8 (.... 17 > Purchased merchandise from Boden Company for $6,200 under credit terms of 2/15,n/30, FOB shipping point, invoice dated July 1. Note: Enter debits before cresits: Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the gross method. Juty 1 Purchased merchandise from Boden Company for $6,200 under credit terns of 2/15, n/30, FoB shipping point, invoice dated Juty 1. July 2 Sold merchandise to Creek Conpany for $900 under credit terms of 2/10, n/60, Fos shipping point, invoice dated July 2. The merchandise had cost $517. Juty 3 Paid $120 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,500 for $1,900 cash. July 9 Purchased merchandise trom Leight Conpany for $2,700 under credit terms of 2/15,0/60,F0B destination, invoice dated July 9. Juty 11 Returned $700 of merchandise purchased on July 9 fron Leight Conpany and debited its account payable for that amount. July 12 Received the batance due from Creek Conpany for the invoice dated Juty 2 , net of the discount. Juty 16 Paid the balance due to Boden Company within the discount period. Juty 19 Sold merchandise that cost $1, eas to Art Company for $1,500 under credit terms of 2/15, n/60, F0B shipping July 21 point, invoice dated July 19. point, invoice dated July 19 . accounts receivable for that anount. July 24 Paid Leight Conpany the balance due, net of discount. July 30 Received the balance due fron Art Company for the invoice dated July 19 , net of discount. point, invoice dated Juty 31
