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 $6,490 under credit terns of 2/15,n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Creek Company for $1,690 under credit terms of 2/10,n/6e, ros shipping point, invoice dated July 2 . The merchandise hod cost $533. July 3 paid $130 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 fron Leight Company for $2,400 under credit terms of 2/15,n/60, foe destinat fon, involce dated July 9. July 11 Returned $400 of merchandise purchased on July 9 fron Leight Conpany and debited its account payable for that anount. 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, Fo6 shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of s25e to Art Company for merchandise sold on July 19 and eredited Art's accounts receivable for that anount. July 24 Paid Leight Company the bolance due, net of discount. July 30 Received the balance due frap Art Company for the invoice dated July 19, net of discount. July 31 Sold serchandise that cost $9,260 to Creek Company for $7,400 under credit teras of 2/10, n/60, Foe shlpping point, invoice dated July 31 . Journal entry worksheet 7817 Purchased merchandise from Boden Company for $6,400 under credit terms of 2/15,n/30, FOB shipping point, invoice dated July 1. Note: Enter debits before credits