Problem 4-1A Preparing journal entries for merchandising activities-perpetual sy

Question

Problem 4-1A Preparing journal entries for merchandising activities-perpetual syste Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the points (Hint It will help to identify each receivable and payable, for example, record the purchase on July 1 in Accounts Duly 1 Purchased merchandise from Boden Company for S6,00e under credit terms of i/15, n/3e, Foe shipping point, ?nvoice dated Company July 1 ndise to Creek Co. for $9e0 under credit terns of 2/10, n/6e, FoB shipping point, invoice dated July 2. The ise from Leight Co. for $2,2ee under credit, terns of 2/15, n/6e, FoB destination, invoice dated July 9. goods sold on July 19 due from Art Co. for the invo ros shipping po nt, Journal entry worksheet 10.2. ? Next >

Explanation / Answer

Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Jul Merchandise Inventory                             6,000.00    Accounts Payable - Boden      6,000.00 (record the merchandise purchase) 2-Jul Accounts Receivable - Creek                    900.00    Sales          900.00 (record the sales to Creek) Cost of Goods Sold                                        500.00 Merchandise Inventory          500.00 (record the cost of goods sold) 3-Jul Merchandise Inventory                                 125.00    Cash          125.00 (record the freight paid) 8-Jul Cash                                                                 1,700.00    Sales      1,700.00 (record the cash sales) Cost of Goods Sold                                    1,300.00 Merchandise Inventory      1,300.00 (record the cost of goods sold) 9-Jul Merchandise Inventory                             2,200.00    Accounts Payable - Leight      2,200.00 (record the purchase of inventory) 11-Jul Accounts Payable - Leight                            200.00 Merchandise Inventory          200.00 (record the return on inventory) 12-Jul Cash                                                                    882.00 $900 X 98% Sales Discount                                                   18.00 $900 X 2%    Accounts Receivable - Creek          900.00 (record the amount received) 16-Jul Accounts Payable- Boden                      6,000.00     Cash      5,940.00 $6000 X 99%     Purchase Discount            60.00 $6000 X 1% (Record the amount paid) 19-Jul Accounts Receivable - Art                   1,200.00    To Sales      1,200.00 (record the sales to Art Co.) Cost of Goods Sold                                        800.00 Merchandise Inventory          800.00 (record the cost of goods sold) 21-Jul Sales Return & Allowance                            100.00    Accounts Payable - Art          100.00 (record the credit memo issued) 24-Jul Accounts Payable - Leight                        2,000.00     Cash      1,960.00 $2,000 X 98%     Purchase Discount            40.00 $2,000 X 2% (record the cash paid) 30-Jul Cash                                                               1,078.00 $1,100 X 98% Sales Discount                                                22.00 $1,100 X 2%    Accounts Receivable - Art      1,100.00 (record the cash received) 31-Jul Accounts Receivable - Creek             7,000.00    Sales      7,000.00 (record the sales made to creek) Cost of Goods Sold                                     4,800.00 Merchandise Inventory      4,800.00 (record the cost of goods sold) As per Chegg Guidelines, you can ask one question at a time. For other questions, please ask it again

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