Problem 4-1A Preparing journal entries for merchandising activities-perpetual system LO P1, P2 July 1 Purchased merchandise from Boden Company for $7,000 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1 2 Sold merchandise to Creek Co. for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $583 3 Paid $115 cash for freight charges on the purchase of July 1 8 Sold merchandise that had cost $2,300 for $2,700 cash 9 Purchased merchandise from Leight Co. for $2,500 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9 11 Received a $500 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. 16 Paid the balance due to Boden Company within the discount period. 19 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. 21 Issued a $200 credit memorandum to Art Co. for an allowance on goods sold on July 19 24 Paid Leight Co. the balance due after deducting the discount. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount. 31 Sold merchandise that cost $5,800 to Creek Co. for $7,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31 Prepare journal entries to record the above merchandising transactions of Blink Company, which applies the perpetual inventory system. Journal entry worksheet 1 2 3 4 5 6 7 8 17 Purchased merchandise from Boden Company for $7,000 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1 Note: Enter debits before credits. Date General Journal Debit Credit July 01 Record entry Clear entry View general journal Purchased merchandise from Boden Company for $7,000 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1 1 2 Sold merchandise to Creek Co. for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2 Record the cost of merchandise sold, $583. 3 4 Paid $115 cash for freight charges on the purchase of July 1 Record sale of merchandise for $2,700 cash 5 Record cost of merchandise sold, $2,300 6 7 Purchased merchandise from Leight Co. for $2,500 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Received a $500 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 8 9. 9 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. 10 Paid the balance due to Boden Company within the discount period 11 Sold merchandise to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19 12 Record cost of merchandise sold, $800 13 Issued a $200 credit memorandum to Art Co. for an allowance on goods sold on July 19. 14 Paid Leight Co. the balance due after deducting the discount 15 Received the balance due from Art Co. for the invoice dated July 19, net of discount
