Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

what did i do wrong? Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the gross

what did i do wrong? image text in transcribed
image text in transcribed
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 merchandise from Boden Company for $6,400 under credit terms of 2/15, 1/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $950 under credit terms of 2/10, 1/60) FOB shipping point invoice dated July 2. The merchandise had cost $533 3 Paid $125 cash for freight charges on the purchase of July 1 8 Sold merchandise that had cost $1,700 for $2,100 cash 9 Purchased merchandise from Leight Co. for $2,800 under credit terms of 2/15, 1/60, FOB destination, invoice dated July 9 11 Returned $100 of merchandise purchased on July ofron Leight Co. and debited its account payable for that amount 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount 16 Paid the balance due to Boden Company within the discount period 10 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of 2/15, 1/60) FOB ship ng point, invoice dated July 19. 21 Gave a price reduction (allowance) of $200 to Art Co. for merchandise sold on July 19 and credited Art's accounts receivable for that amount 24 Paid Leight Co. the balance due, net of discount. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount 31 Sold merchandise that cost $5,200 to Creek Co. for $7.300 under credit terns of 2/10, n/60, FOB shipping point, invoice dated July 31. Answer is not complete. No Debit Credit Date July 01 1 General Journal Merchandise inventory Accounts payable--Boden 6.100 6,400 2 July 02 Accounts receivable Creek 950 3 11 July 19 1.200 Accounts receivable Art Sales O 1,200 12 July 19 > 800 Cost of goods sold Merchandise inventory 800 13 July 21 200 Sales returns and allowances Accounts receivableArt 200 14 July 24 2,000 Accounts payable-Leight Merchandise inventory Cash OOO 40 1,960 15 July 30 Cash Sales discounts Accounts receivable Art 1,176 24 OO 1,200 16 July 31 Accounts receivable-Creek Sales 7.300 O 7.300 17 July 31 Cost of goods sold 5,200 5,200

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Audit Process Principles Practice And Cases

Authors: Iain Gray, Stuart Manson,

4th ISA Edition

1844806782, 9781844806782

More Books

Students also viewed these Accounting questions

Question

Who does the ACA impact and who does it not?

Answered: 1 week ago

Question

What are the purposes of promotion ?

Answered: 1 week ago

Question

1-4 How will MIS help my career?

Answered: 1 week ago