Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the gross method. July 1 Purchased merchandise

Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory
system and the gross method.
July 1 Purchased merchandise from Boden Company for $6, under credit terms of 1/15, n/30, FOB shipping point, invoice
dated July 1.
July 2 Sold merchandise to Creek Company for $99 under credit terms of 210,n6, FOB shipping point, invoice dated July
The merchandise had cost $500.
July 3 Paid $125 cash for freight charges on the purchase of July 1.
July 8 Sold merchandise that had cost $1,300 for $1,700 cash.
July 9 Purchased merchandise from Leight Company for $2,200 under credit terms of 215, n/69, FOB destination, invoice dated
July 9.
July 11 Returned $260 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 $1,20 under credit terms of 215, n/60, FOB shipping point,
invoice dated July 19.
July 21 Gave a price reduction (allowance) of $100 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 $4,800 to Creek Company for $7,0 under credit terms of 210, n/60, FOB shipping point,
invoice dated July 31.
General Journal tab - Journalize the merchandising transactions. The General Ledger, trial balance and schedules of
accounts receivable and accounts payable will be updated based on your entries.
General Ledger tab - One of the advantages of general ledger software is that posting is done automatically. To see the
detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the
General Ledger tab.
Trial Balance tab - General ledger software also automates the preparation of trial balances. A trial balance lists each
account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total
credits.
Schedule of Receivables tab - General ledger software automates the balances for each of the customers' accounts.
Schedule of Payables tab - General ledger software automates the balances for each of the suppliers' accounts.
Income Statement tab - Prepare the income statement through the calculation of gross profit.
Impact on Income tab - Indicate the impact each transaction had on net income.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Certificate Of Cloud Auditing Knowledge Study Guide

Authors: Isaca

1st Edition

1604208619, 978-1604208610

More Books

Students also viewed these Accounting questions

Question

What is the preferred personality?

Answered: 1 week ago