Problem 4-1A (Static) Preparing Journal entries for merchandising activities 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 $6.000 under credit tents of 1/15, 1/30, Yos Shipping point, invoice dated July 1 July 2 Sold merchandise to Creek Company for 900 under Creditres of 2/10, 1/60, FB shipping point, Invoice dated July 2. The merchandise had cost 3500 July Paid $125 cash for freight charge of the purchase of July 1 July Solit merchandise that had cost $1,300 for $1,200 coth July Purchased merchandise from Light Company for $3,200 under credit teres of 1/2, 1/6, F08 destination, Invoice dated July 9. July 11 Neturned $200 oferchandise purchased on July froe Light Company and debited its account payable for that mount July 12 Received the balance due from Creek Company for the invoice dated July 2. net of the discount Joly 16 Paid the balance due to toden company within the discount period, July 19 Sold merchandise that cost to Art Company for $1,200 under credit teret of 2/15, 1/60, FOB shipping point, Invoice dated July 19 Suly 21 Gave price reduction allowance of $100 to Art Company for merchandise sold on July 19 and credited Art's accounts receivable for that mount July 24 Paid Leight Company the balance due, not of discount July 0 Received the balance due Froe Art Company for the invoice dated July 19, net of discount Duly 31 Sold merchandise that cost 34,00 to Creek Company for $7.00 under credit tens of 2/10, 60, 708 Shipping point, invoice dated July 31. View transactionist Journal entry worksheet 2 3 4 5 6 7 17 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, 1/30, POB shipping point, Invoice dated July 1. note des teorier General Journal Debit Credit Date July 01 Record entry Chew entry View general Journal 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 terns of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Creek Company for $900 under credit terms of 2/10, n/60, FOB 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 & Sold merchandise that had cost $1,300 for $1,700 cash. July 9 Purchased merchandise from Leight Company for $2,200 under credit terms of 2/15, 1/60, 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 tha 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, n/60, 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 $4,880 to Creek Company for $7,000 under credit terms of 2/10, n/68, 706 shipping point, invoice dated July 31. Journal entry worksheet .... Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, 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 Journal entry worksheet Sold merchandise to Creek Company for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. Note: Enter debits before credits Date General Journal Debit Credit July 02 Record entry Clear entry View general journal Journal entry worksheet Record the cost of merchandise sold, $500. Note: Enter debits before credits. Date General Journal Debit Credit July 02 Record entry Clear entry View general journal Journal entry worksheet Paid $125 cash for freight charges on the purchase of July 1. Note: Enter debits before credits. General Journal Debit Credit Date July 03 Record entry Clear entry View general journal Journal entry worksheet Record sale of merchandise for $1,700 cash. Note: Enter debits before credits, General Journal Debit Credit Date July 08 Record entry Clear entry View general journal Journal entry worksheet Purchased merchandise from Leight Company for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Note: Enter debits before credits. Date General Journal Debit Credit July 09 Record entry Clear entry View general journal Journal entry worksheet Returned $200 of merchandise purchased on July 9 from Leight Company and debited its account payable for that amount. Note: Enter debits before credits. Date General Joumal Debit Credit July 11 Record entry Clear entry View general journal Journal entry worksheet
