Question

Check my w 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 $6,000 under credit terms of 2/15, n/30, TOB shipping point, invoice dated July 1. 2 sold merchandise to Creek co, for $900 under credit terms of 2/10, n/60, POB shipping point, invoice dated July 2. The merchandise had cost $500. 3 Paid $120 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,300 for $1,700 cash. 9 Purchased merchandise from Leight Co. for $2,600 under credit terms of 2/15, 1/60, FOB destination, invoice dated July 9. 11 Returned $600 of merchandise purchased on July 9 from 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. 19 sold merchandise that cost $1,000 to Art Co. for $1.500 under credit terns of 2/15, 1/60, YOD shipping point, invoice dated July 19. 21 Cave a price reduction (allowance) of $250 to Art Co. for merchandise sold on July 19 and credited nut'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 $4,800 to Creek Co. for $7.100 under credit term of 2/10, 1/60, POB shipping point, invoice dated July 31. ces View transaction list Journal entry worksheet < 2 3 1 5 6 7 8 ... 17 > Purchased merchandise from Boden Company for $6,000 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1.

Answer 1

Date	General Journal					Debit	Credit
1-Jul	Merchandise inventory					6,000
	Accounts payable-Boden						6,000
2-Jul	Accounts receivable-Creek co					900
	Sales						900
	cost of goods sold					500
	Merchandise inventory						500
3-Jul	Merchandise inventory					120
	cash						120
8-Jul	Cash					1,700
	sales						1,700
	cost of goods sold					1,300
	Merchandise inventory						1,300
9-Jul	Merchandise inventory					2,600
	Accounts payable-leight co						2,600
11-Jul	Accounts payable-leight co					600
	merchandise inventory						600
12-Jul	Cash					882
	Sales discount					18
	Accounts receivable-creek co						900
16-Jul	Accounts payable-Boden					6,000
	Merchandise inventory						120
	cash						5880
19-Jul	Accounts receivable-Art co					1,500
	Sales						1,500
	Cost of goods sold					1,000
	Merchandise inventoy						1,000
21-Jul	Sales return and allowance					250
	Accounts receivable-Art co						250
24-Aug	Accounts payable-leigh co					2,000
	Merchandise inventory						40
	Cash						1960
30-Jul	Cash					1225
	Sales discount					25
	Accounts receivable-Art co						1,250
31-Jul	Accounts recievable-creek co					7,100
	Sales						7,100
	Merchandise inventory					4,800
	Cost of goods sold						4,800