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Problem 4 - 1 A ( Algo ) Preparing journal entries for merchandising activities LO P 1 , P 2 Prepare journal entries to record

Problem 4-1A (Algo) Preparing journal entries for merchandising activities LO P1, P2
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 $6,400 under credit terms of 215, n/30, F0B shipping point, invoice dated July 1.
July 2 Sold merchandise to Creek Company for $900 under credit terms of 210,n60, F0B shipping point, invoice dated July 2. The merchandise had cost $533.
July 3 Paid $125 cash for freight charges on the purchase of July 1.
July 8 Sold merchandise that had cost $1,700 for $2,100 cash.
July 9 Purchased merchandise from Leight Company for $2,400 under credit terms of 215,n60, F0B destination, invoice dated July 9.
July 11 Returned $400 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, F0B 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 $5,200 to Creek Company for $7,100 under credit terms of 210, n/60, F0B shipping point, invoice dated July 31.
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