repare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory systern and he gross method. July 1 Purchased merchandise from Boden Company for $6,100 under credit terms of 2/15,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 5568 . July 3 Paid $140 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,460 for $1,800 cash. July 9 Purchased merchandise from Leight Company for $2,800 under credit terns of 2/15, n/6e, Fo8 destination, invoice dated July 9. July 11 Returned $800 of merchandise purchased on July 9 fron Leight Conpany 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 \$1,600 to Art Conpany for $1,500 under credit teras of 2/15, n/6e, F0B shipping point, invoice dated July 19. July 21 Gave a price reduction (altowance) of \$25e to Art Conpany for merchandise sold on July 19 and credited Art's accounts receivable for that anount. 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 $4,990 to Creek Conpany for $6,900 under credit terns of 2/10, n/60, F0B shipping point, invoice dated July 31 . Journal entry worksheet Purchased merchandise from Boden Company for $6,100 under credit terms of 2/15,n/30, FOB shipping point, invoice dated July 1. Note: Enter debits before credits. Prepare journal entries to record each of the following merchandising transactions assuming that the buyer uses the periodic inventory system and the gross method. April 2 Purchased $3,400 of merchandise fron Lyon Company with credit terns of 2/15,n/60, invoice dated April 2 , and Foe shipping point. April 3 Paid \$19e cash for shipping charges on the April 2 purchase. April 4 Returned to Lyon Conpany unacceptable nerchandise that had an invoice price of s6sa. April 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned nerchandise. April 18 Purchased $7,500 of nerchandise fron'Frist Corporation with eredit teras of 1/10, n/30, invoice dated Aprit 18, and FOB destination. Aprit 21 After negotiations over scuffed nerchandise, received fron Frist a $5e0 allowance toward the 57,500 owed on the April 18 purchase. Aprit 28 sent check to Frist paying for the April 18 purchase, net of the allowance and the discount. Fit-for-Life Foods reports the following income statement accounts for the year ended December 31 . Prepare a multiple-step income statement. The following list includes temporary accounts from the December 31 adjusted trial balance of Emiko Company. Use these normal account balances to journalize closing entries. Fos shipping point. Apri1. 3 Paid $310 cash for shipping charges on the Aprit 2 purchase. April 4 Returned to Lyon Company unacceptable nerchandise that had an involce price of s70a. Apri1 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. Apri1 18 Purchased $5,500 of merchandise from Frist Corporation with credit terks of 1/10, n/38, invoice dated April 18, and FQB destination. April 21 After negotiations over scuffed merchandise, received fron Frist a $5 ab altowance toward the 55 , see owed on the Aprit 18 purchase. April 28 Sent check. to Frist paying for the Aprit 18 purchase, net of the allowance and the discount
