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 I Purchased merchandise from Boden Coapany for $6,200 under credit terms of 2/15, n/so, foe shipping point, involce dated July 1. July 2 Sold merchandise to Creek Conpany for $000 under credit terns of 2/10,n/60, ros shipping point, Invoice dated July 2 . The merchandise had cost 5517 . July 3 Poid $115 cash for freight charges on the purchase of July 1. July 8 sold merchandise that had cost 51,500 for $2,900 cash. July 9 Purchased merchandise fron Leight Company for $2,500 under credit terws of 2/25, a/60, fos destinat fan, Invoice dated July 9. July 11 Returned 5500 of merchandise purchased on July 0 froe Leight Company and debited its account payable for thot anount. July 12 Received the balance due froin Creek Compony for the involice dated July 2 , net of the discount. ouly 16 poid the belence due to Boden coepony within the discount period. july 19 Sold serchandise that cost $1, eoe to Art Company for $1,500 under credit terns of 2/15, N/60, ros shipping point, thwoice dated July 19 , 2 ily 21 Gave a price reduction (allowance) of 5250 to Art Coopany for werchandise sold on July 19 and credited Art's accounts. recelvable for that aeoint. guly 24 Pold Leight Company the balance due, net of discount. july 30 Recelved the balance die frou Art Company for the involce dated July 19, net of discount. guly 31 sold merchandise that cost $5,000 to creek Company for $7,000 under credit teras of 2/10, n/60, rob shipping point, invoice dated July 31. Journal entry worksheet