Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system a 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 $6,800 under credit terms of 2/15, n/30, POB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $1,000 under credit terms of 2/10, n/60, POB shipping point, invoice dated July 2. The merchandise had cost $567. 3 Paid $125 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $2,100 for $2,500 cash. 9 Purchased merchandise from 'Leight Co. for $2,700 under credit terms of 2/15, n/60, TOB destination, invoice dated July 9. 11 Returned $700 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, TOB 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 dus, 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 $5,600 to Creek Co. for $7,300 under credit terms of 2/10, n/60, POB shipping point, invoice dated July 31. View transaction list Journal entry worksheet Journal entry worksheet 1 2 3 4 5 6 7 8 ..... 17 Purchased merchandise from Boden Company for $6,800 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. Note: Enter debits before credits. Debit Credit Date July 01 UT General Journal A + Record entry Clear entry View general journal Journal entry worksheet 3 4 5 6 7 8 ..... 17 Sold merchandise to Creek Co. for $1,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. Note: Enter debits before credits. General Journal Date July 02 Debit Credit Record entry Clear entry View general jc Journal entry worksheet K HO 1 2 3 4 5 6 7 8 ..... 17 Record the cost of merchandise sold, $567 Note: Enter debits before credits. Date General Journal Debit Credit July 02 Triandanaral heet
