Problem 4-1A (Static) Preparing journal entries for merchandising activities LO P1, P2 Prepare journal entries 10 record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the gross method July 1 Purchased merchandise fron Boden Company for $6,000 under credit terms of 1/15, 1/30, FOB shipping point, invoice dated July 1 July 2 Sold merchandise to Creek Company for $9ee under credit terms of 2/18, 1/60, FOB shipping point, invoice dated July 2. The merchandise had cost $580. July 3 Paid $125 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,380 for $1,700 cash. July 9 Purchased merchandise from Leight Company for $2,200 under credit terms of 2/15, 1/50, FOB destination, invoice dated July 9. July 11 Returned $200 of merchandise purchased on July 9 from Leight Company and debited its account payable for that amount. 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 $800 to Art Company for $1,200 under credit terms of 2/15, 1/6, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction allowance) of $100 to Art Company for merchandise sold on July 19 and credited Art's accounts receivable for that amount July 24 Paid Leight Company the balance due, net of discount. July 30 Received the balance due from Art Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost 54,800 to Creek Company for $7.000 under credit tees of 2/10, 1/60) Fos shipping point, invoice dated July 31 View transaction ist View journal entry worksheet Debit Credit No Date IN 0.000 1 General Journal Merchandise inventory Accounts payable Boden July 01 0.000 IN 000 2 July 02 Accounts receivable Creek Sales 000 3 500 2 July 02 Cost of goods sold Merchandise inventory 500 4 125 July 03 Merchandise inventory Cash 125 5 July 1.700 Cash Sales 1.700 6 July 00 1.300 Cost of goods sold Merchandise inventory 1.300 no 03 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 from Boden Company for $6,ete under credit torns of 1/15, w30, Pod shipping point, invoice dated July 1 July 2 Sold merchandise to Creek Company for $900 under credit terms of 2/10, 1/6, Yoo Shipping point, invoice dated July 2. The merchandise had cost $500 July 3 Paid $125 cash for freight charges on the purchase of July 1, July 8 Sold merchandise that had cost $1,30 for 51 700 cash July 9 Purchased merchandise fros Leight Company for $2,200 under credit terns of 2715, W/6008 destination, Invoice dated July July 11 Returned 5200 of merchandise purchased on July from Light Company and debited its account payable for that amount July 12 Received the balance de from creek Company for the invoice dated July 2, net of the discount July 16 Paid the balance due to Boden Corparty within the discount period. July 19 sold serchandise that costs to Art Company for $1,200 under credit ters of 2715, 1/60, Yo shipping point, invoice dated July 19 July 21 Gave a price reduction allowance) of $200 to Art Company for merchandise sold on July 19 and credited Art's accounts receivable for that mount July 24 Paid Lelicht Company the balance due, net of discount. July 3 Received the balance due front Art Company for the invoice dated July 19, het of discount Ouly 31 Sold merchandise that cost $4,800 to Creek Company for 57,600 under credit tored of 2/18, 1/6, Foshipping point, invoice dated July 1 yes View transaction ist Journal entry worksheet