Problem 4-1A (Static) 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 1 Purchased merchandise from Boden Company for 34 er under credit tans of 1/15,6/38, Pod shipping point, invoice dated July 1. July 2 Sold merchandise to Creek Company for $90e under credit terns of 3/10, 1/60, Po shipping point, invoice dated July 2. The merchandise had cost 5500 July 3 Paid $125 cash for freight charges on the purchase of Ouly 12 July 8 Sold cerchandise that had cost 31,300 for 51,00 cash July 9 Purchased merchandise from Light Company for $2,200 under credit te of 2/15, 1/60,00 destination, invoice dated July 9. July 11 Returned 3200 of merchandise purchased on July for Celcht Company and debited its account payable for that amount July 12 Received the balance de from Creek Company for the invato dated July 2, het of the discount. July 16 Paid the balance due to Boden Company Mithin the discount period July 19 Sold merchandise that cost see to art company for $1.200 under credit te of 2/15, 1/60: FOB shipping point, Invoice dated July 19 July 21 Gave price reduction (lowance) of State Art Company for chandise sold on July 19 and credited Art's accounts receivable for the amount July 24 Paid Leight Company the balance due het of discount July 3 Received the balance due Eros Art Company for the invece dated July 10, net of discount July 31 sold serchandise that cost 34,88 to check company for $7.00 under credit terms of 2750, W/ FOB shippine point, invoice dated July 31 View transaction list Journal entry worksheet Fres Light Company and debited 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 serchandise that costs to Act Company for $1.200 under credit te of 2/15, 1/6, Foo shipping point invoice dated July 19 July 2 Gave price reduction allowance) of $100 to Art Company for chandise sold on July 19 and credited Art's accounts receivable for that ont July 24 Pai teight Company the balance doen of discount July 30 Received the balance due from Art Company for the invoice dated July 19, net of discount July in sold erchandise that cost 54,10 to Creer Company for 57.000 under Credit terms of 2/30, Po shipping point, invoice dated July 31 View transactionist Journal entry worksheet Record cost of merchandise sold, $800. Entre Date General Journal Debit Cardit W 30 ho Record Clear View.gerala Problem 4-1A (Static) 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 1 Purchased merchandise from Boden company for $6,000 under Credit tents of 1/15, 1/30, 708 Shipping point, invoice dated July 1 July 2 sold merchandise to Cheek company for 3900 under credit toret of 2/10, 1/60, 70 shippine point, Invoice dated July 2. The merchandise had cost 3500 July 3 Paid $125 cash for freight charges on the purchase of July 1. July Sold merchandise that had cost $1,300 for $1,200 cash July 9 Purchased merchandise free right company for $2.200 under Credit tors of 1/35, 1/60, Fos destination, invoice dated July 9. July 11 Returned $200 oferchandise purchased on July from Chit Company and debited its account payable for that amount. July 12 Received the balance de from Creek Company for the invoice dated July 2net of the discount. July 16 Paid the balance due to Boden Company within the discount period, July 19 Sold merchandise that cost 5500 to Art Company for $1,200 under Credit ter of 2/15, 1/60) FOB shipping point, invoice dated Duly 19 July 21 Gave price reduction (11uance) 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, quly in sold serchandise that cost 54,6 to Creek company for 37,60 under credit teres of 2720, n/a, roe shipping point, Invoice dated July 1 View transaction list Journal entry worksheet