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. July 1 Purchased merchandise from Boden Company for $6,700 under credit terms of 2/15,n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Creek Company for $950 under credit terms of 2/10,n/60, FoB shipping point, invoice dated July 2. The merchandise had cost $558. July 3 Paid $110 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $2,000 for $2,400 cash. July 9 Purchased merchandise from Leight Company for $2,200 under credit terms of 2/15, 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 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 Art Company for $1,200 under credit terms of 2/15,n/60, FOB shipping point, invoice dated July 19 July 21 Gave 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 $5,500 to Creek Company for $7,200 under credit terms of 2/10,n/60, FOB shipping point, invoice dated July 31. Purchased merchandise from Boden Company for $6,700 under credit terms of 2/15,n/30,FOB shipping point, invoice dated July 1. Note: Enter debits before credits. Journal entry worksheet Sold merchandise to Creek Company for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. Note: Enter debits before credits. Journal entry worksheet Record the cost of merchandise sold, $558. Note: Enter debits before credits. Paid $110 cash for freight charges on the purchase of July 1 . Note: Enter debits before credits. Record sale of merchandise for $2,400 cash. Note: Enter debits before credits. Record cost of merchandise sold, $2,000. Note: Enter debits before credits. Purchased merchandise from Leight Company for $2,200 under credit terms of 2/15,n/60, FOB destination, invoice dated July 9. Note: Enter debits before credits. Journal entry worksheet Returned $200 of merchandise purchased on July 9 from Leight Company and debited its account payable for that amount. Note: Enter debits before credits. Received the balance due from Creek Company for the invoice dated July 2 , net of the discount. Note: Enter debits before credits. Paid the balance due to Boden Company within the discount period. Note: Enter debits before credits. Sold merchandise to Art Company for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. Note: Enter debits before credits. Journal entry worksheet 1789 Record cost of merchandise sold, $800. Note: Enter debits before credits. Journal entry worksheet Gave a price reduction (allowance) of $200 to Art Company for merchandise sold on July 19 and credited Art's accounts receivable for that amount. Note: Enter debits before credits. Paid Leight Company the balance due, net of discount. Note: Enter debits before credits. Received the balance due from Art Company for the invoice dated July 19 , net of discount. Note: Enter debits before credits. Sold merchandise to Creek Company for $7,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Note: Enter debits before credits. Record cost of merchandise sold, $5,500. Note: Enter debits before credits