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.) hased merchandise from Boden Company for $6,900 under credit terms of 2/15, n/30 FOB shipping point, invoice dated July1 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $575 Paid $130 cash for freight charges on the purchase of July 1 Sold merchandise that had cost $2,200 for $2,600 cash Purchased merchandise from Leight Co. for $2,800 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9 "Received a $800 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. 6Paid the balance due to Boden Company within the discount period 19 Sold merchandise that cost $1,200 to Art Co. for $1,800 under credit terms of 2/15, n/60 FOB shipping point, invoice dated July 19 2Issued a $300 credit memorandum to Art Co. for an allowance on goods sold on July 19 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 $5,700 to Creek Co. for $6,900 under credit terms of 2/10, n/60 FOB shipping point, invoice dated July 31 View transaction list Journal entry worksheet 2 3 4 5 7 8 17 Purchased merchandise from Boden Company for $6,900 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. Note: Enter debits before credits. Date General Journal Debit Credit July 01 Record entry Clear entry View transaction list Journal entry worksheet 1 2 3 4 567 17 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. Note: Enter debits before credits. Date General Journal Debit Credit July 02 Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 2 34 567 8 17 Record the cost of merchandise sold, $575 Note: Enter debits before credits. Date General Journal Debit Credit July 02 Record entry Clear entry View general journal View transaction list Journal entry worksheet 2 3 5 6 7 8 17 Paid $130 cash for freight charges on the purchase of July 1. Note: Enter debits before credits. Date General Journal Debit Credit July 03 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 17 Record sale of merchandise for $2,600 cash Note: Enter debits before credits. Date General Journal Debit Credit July 08 Clear entry View general journal View transaction list Journal entry worksheet 5 6 7 8 17 Record cost of merchandise sold, $2,200 Note: Enter debits before credits. Date General Journal Debit Credit July 08 Record entry Clear entry Journal entry worksheet 3 6 7 8 17 Purchased merchandise from Leight Co. for $2,800 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Note: Enter debits before credits Date General Journal Debit Credit July 09 Clear entry View general journal Journal entry worksheet 2 3 6 7 17 Received a $800 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9. Note: Enter debits before credits. Date General Journal Credit July 11 Record entry Clear entry View general journa iew transaction list Journal entry worksheet 12 13 14 17 10 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. Note: Enter debits before credits. Debit Credit Date General Journal July 12 View general journal Clear entry Record entry Journal entry worksheet 9 10 12 13 14 17 Paid the balance due to Boden Company within the discount period. Note: Enter debits before credits Date General Journal Debit Credit July 16 Record entry Clear entry View general journal View transaction list Journal entry worksheet 10 12 13 14 17 Sold merchandise to Art Co. for $1,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. Note: Enter debits before credits. Date General Journal Credit July 19 Record entry Clear entry View general journal View transaction list Journal entry worksheet 10 11 12 13 14 17 Record cost of merchandise sold, $1,200. Note: Enter debits before credits. Date General Journal Debit Credit July 19 Record entry Clear entry View general journal View transaction list Journal entry worksheet 10 11 12 13 14 17 Paid Leight Co. the balance due, net of discount. Note: Enter debits before credits. Date General Journal Debit Credit July 24 Record entry Clear entry View transaction list Journal entry worksheet 1. 10 1112 13 14 15 15 16 17 Received the balance due from Art Co. for the invoice dated July 19, net of discount. Note: Enter debits before credits. Date General Journal Debit Credit July 30 Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 10 11 12 13 14 15 16 17 Record cost of merchandise sold, $5,700 Note: Enter debits before credits. Dele General Journal Debit Credit July 31 Record entry Clear entry View general journal
