Question

Help with this please. It says the July 12 Dr. Cash should be $882, July 16 Cr. Cash should be $5940, July 24 Cr. Cash should be $1960, July 30 Dr. Cash should be $1078

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 pay- able; 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 1/15, n/30. FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500. 3 Paid $125 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 $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. 11 Returned $200 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 $800 to Art Co. for $1,200 under credit terms of 2/15, n/60. FOB shipping point, invoice dated July 19. 21 Gave a price reduction (allowance) of $100 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 $4,800 to Creek Co. for $7,000 under credit terms of 2/10. n/60, FOB shipping point, invoice dated July 31.

Answer 1

Date Answer. 1. July ta Received the balance from creek.co. Invoice bated Julyą. Net of discount July a: Sales – $900 under credit terms alio, /60. A Credit terms says that if the buyer repays the amount due within 10 days he should be given 26). Discount on Amount payable or he should pay within 60 days without any discount. As July 12,98 oth day from date of sale, Discount should be given Journal entry. Cash Alc... or $882 Discount Allowed. DY $18 (900x24.] To creek.co $900 tbeing cash received from cucere 2. July 16. paid the balance due to Bodenco. · July pst purchases = 6000$ Credit terms 2 1115, ™130. As payment is on 1545 deey. from date of purcbare discount should be keleived. Boden company al-- -- or 6000s To Discount eleived 60% [6000x1%) To Cath di 5940$ tbeing cach paid to Boden

3. July ay paid Leight.co, the balance due July 9th purchaser - $2,200 July into returno - (200) Net purcharer $2000 credotterms > Plin . Af, we are paying the amount within 15 days, we should relive discount of at Journal entry : Leight & to a/c .... by 2000} To Dizount reand 40$ (2000ner) To cash dic 1960$ tbeing cash paid net of dervant] nen. 9. July 30. Releired bal from artco. July 19 - Sold $1200 under cudit terms of 25in/60 We are wiring payment within 15 days, so the buyer phoned be given durrount of a%. on Amount payables on, July al. We gare price reduction of Bioda Net amount due = $1100 Journal entry: Cash 410 -- -r Dr $1078 Discount allowed ello ---DY $aa (1100 129.) to Arto co die tbeing cash reeived het of deroant).