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Prepare journal entries to record the following merchandising transactions of Cabelas, which uses the perpetual inventory system and the gross method. Hint: It will help
Prepare journal entries to record the following merchandising transactions of Cabelas, 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 PayableBoden.
July | 1 | Purchased merchandise from Boden Company for $6,100 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. | ||
2 | Sold merchandise to Creek Co. for $1,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $508. | |||
3 | Paid $130 cash for freight charges on the purchase of July 1. | |||
8 | Sold merchandise that had cost $1,400 for $1,800 cash. | |||
9 | Purchased merchandise from Leight Co. for $2,900 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. | |||
11 | Returned $900 of merchandise purchased on July 9 from Leight Co. and debited its account payable for that amount. | |||
12 | Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. | |||
16 | Paid the balance due to Boden Company within the discount period. | |||
19 | Sold merchandise that cost $1,000 to Art Co. for $1,500 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. | |||
21 | Gave a price reduction (allowance) of $250 to Art Co. for merchandise sold on July 19 and credited Art's accounts receivable for that amount. | |||
24 | Paid Leight Co. the balance due, net of discount. | |||
30 | Received the balance due from Art Co. for the invoice dated July 19, net of discount. | |||
31 | Sold merchandise that cost $4,900 to Creek Co. for $7,100 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. |
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