Problem 4-1A (Algo) Preparing journal entries for merchandising activities LO P1, P2 Prepare joumal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the gross method. July 1 Purchased merchandise fron foden coepany for $6,300 under credit terns of 2/15, n/30, f08 shipping point, invoice dated July 1 July 2 sold merchandise to Creek Coepany for $1,000 under credit teras of 2/10, o/50, F00 shipping point, invoice dated July 2 . The merchandise had cost $525. July 3 Paid $125 cash for fredght charges on the purchase of July. 1. July 8 fold merchandise that had cost $1,630 for $2,,000 cash. July 9 Porchased merchandise froo Leight Company for $2,490 under credit teras of 2/15, n/60, Fog destination, involice dated July. 9. July 11 Meturned 5400 of =erchandise purchased on July 9 from teight Conpany and debited its account payable for that amount. July 12 Heceived the balance due from Creek Cospany for the Invoice dated July 2 , net of the discount. July 16. Pahd the balance due to foden conpany within the discount period. July 19 sold merchandlise that cost 5890 to Art Company for $1,200 under credit terns of 2/15, w/60, foe shipping point, involce iated July 19 . July 21 Gave a price reduction (allowance) of 5200 to Art Company for merchandise sold on luly 12 and credited Art"s accounts receivable for that asount. July 24 Vald leight Company the balanee due, net of discount. July 30 Received the balanee due from Ant Conpany for the invoice dated July 19, net of discount, July 31 sold eerchandise that cost 55,100 to creek coepany for $7,200 inder credit terw of 2/10, f/60, Foe shipping point, invoice