e https/ nework Help Save & E Prepare journal entries to record the following me

Question

e https/ nework Help Save & E 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) uly 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/3, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $988 under credit terms of 2/16, n/6, FOB shipping point, invoice dated July 2. The merchandise had cost $588. 3 Paid $125 cash for freight charges on the purchase of July 1 8 Sold merchandise that had cost $1,380 for $1,700 cash. 9 Purchased merchandise from Leight Co. for $2,289 under credit terms of 2/15, n/e, FOB destination, invoice dated July 9, 11 Received a $200 credit nemorandum from Leight Co. for the return of part of the merchandise purchased on July 9 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 $880 to Art Co. for $1,200 under credit terms of 2/15, n/68, F0B shipping point, invoice dated July 19. 21 Issued a $100 credit memorandum to Art Co. for an allowance on goods sold on July 19. 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 $4,880 to Creek Co. for $7,08e under credit terms of 2/10, n/60, FOE shipping point, invoice dated July 31. un

Explanation / Answer

Journal entries Date Accounts title and explanations Debit $ Credit $ 1.07 Merchandise Inventory Dr. 6000     Accounts payable-Boden Company 6000 2.07 Accounts receivable-Creek Co. Dr. 900      Sales revenue 900 Cost of goods sold Dr. 500    Merchandise inventory 500 3.07 Merchandise Inventory Dr. 125     Cash account 125 8.07 Cash account Dr. 1700     Sales revenue 1700 Cost of goods sold Dr. 1300      Merchandise Inventory 1300 9.07 Merchandise inventory Dr. 2200     Accounts payable - Leight Co. 2200 11.07 Accounts payable-Leight co. 200     Merchandise inventory 200 12.07 Cash Account Dr. 882 Sales discount Dr. 18      Accounts receivable-Creek Co. 900 16.07 Accounts payable-Bodem Co. Dr. 6000      Cash account 5940      Merchandise Inventory (6000*1%) 60 19.07 Accounts receivable-Art Co. 1200      Sales revenue 1200 Cost of goods sold Dr. 800      Merchandise inventory 800 21.07 Sales return and allowance Dr. 100     Accounts receivable-Art co. 100 24.07 Accounts payable-Leight Co. Dr. 2000      Cash account 1960      Merchandise Inventory (2000*2%) 40 30.07 Cash account Dr. 1078 Sales discount Dr. (1100*2%) 22       Accounts receivable-Art Co. 1100 31.07 Accounts receivable-Creek Co. Dr. 7000     Sales revennue 7000 Cost of goods sold Dr. 4800      Merchandise Inventory 4800

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