Problem 4-1A Preparing journal entries for merchandising activities-perpetual system 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. Hint it will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable-Boden. July 1 Purchased aerchandise from Boden Coepany for 86,400 under credit terns of 2/15, n/3e, ros shipping point, invoice dated July 1 . 2 sold merchandise to creek Co. for sise undec credit terms of 2/10,n/60, fon ihipping point, invoice dated Jaly 2 . The. merchandise had cost ss33. 3 Paid 3105 cash for frelght charees of the purchase of july 1. Sold merchandise that had cost $1,700 for $2,100 cash. 9. Porchased merchaodise from Leight Co. for 52,900 under credit teres of 2/15, n/6e, roe destination, invoice dated July 9. 11 ketureed 8900 of merchandise purchased on suly 9 tren lelght Co. and debited its occount payoble for that anount. 12 Hecelved the bolanice due fron Cretk Co. for the invilce dated July 2, net of the discount. 16. Paid the balance due to boden Company within the discount period. 15 Sold serchandise that cost 81,200 to Art Co. for $1,000 under cresit teres of 2/15,n/60, ron shipping point, invoice dated July 19. 21 Giave A price reduction (allonance) of $300 to Art Co. for merchendise sold on July 13 and credited Art's accounts receivable for that anount. 24 Paid Leight Co. the balance due, net of discount. 30 lecelved the balacce due fren Art co, for the involce dated July 19, net of discount. 31 Sold merchandise that cost $5,200 to Creek co. for $7,400 under credit terns of 2/10, n/6e, for shipping point, invoice dated July 31. Journal entry worksheet 34 5 7 817 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. Journal entry worksheet Sold merchandise to Creek Co. for $950 under credit terms of 2/10,n/60,FOB shipping point, invoice dated July 2. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Paid $105 cash for freight charges on the purchase of July 1. Note: Enter debits before credits. Journal entry worksheet 12 Record sale of merchandise for $2,100 cash. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet 17 1 2 5 Purchased merchandise from Leight Co, for $2,900 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Note: Enter debits before credits. Journal entry worksheet Retumed $900 of merchandise purchased on July 9 from Leight Co. and debited its account payable for that amount. Note: Enter debits before credits. Journal entry worksheet Received the balance due from Creek Co. for the invoice dated July 2 , net of the discount. Note: Enter debits before credits. Journal entry worksheet
