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 $6,900 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Creek Company for $1,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $575. July 3 Paid $105 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $2,200 for $2,600 cash. July 9 Purchased merchandise from Leight Company for $2,500 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $500 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 $1,000 to Art Company for $1,500 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $250 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 $5,700 to Creek Company for $6,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Journal entry worksheet < 1 7 8 9 10 11 12 17 .... 13 Record cost of merchandise sold, $1,000. Note: Enter debits before credits. General Journal Debit Credit Date July 19 View transaction list Journal entry worksheet < 9 10 11 .... 17 > Sold merchandise to Art Company for $1,500 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. Note: Enter debits before credits. Date July 19 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 < Prev 1 of 6 Next > 9 10 11 12 13 14 17 > Paid Leight Company the balance due, net of discount. Note: Enter debits before credits. Date July 24 Record entry General Journal Debit Credit Clear entry Journal entry worksheet < View general journal 10 11 12 13 14 15 16 17 > Sold merchandise to Creek Company for $6,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Note: Enter debits before credits. Date July 31 General Journal Debit Credit Record entry Clear entry View general ja Journal entry worksheet > 8 9 10 11 12 13 17 Gave a price reduction (allowance) of $250 to Art Company for merchandise sold on July 19 and credited Art's accounts receivable for that amount. Note: Enter debits before credits. Date July 21 General Journal Debit Credit Clear entry Record entry Journal entry worksheet > View general journal 10 11 12 13 14 15 17 .... Received the balance due from Art Company for the invoice dated July 19, net of discount. Note: Enter debits before credits. Date July 30 Record entry General Journal Debit Credit Clear entry Journal entry worksheet View general journal ..... 10 11 12 13 14 15 16 17 Record cost of merchandise sold, $5,700. Note: Enter debits before credits. Date July 31 General Journal Debit Credit View general journal Record entry Clear entry Record entry Clear entry View general journal