Question

I need help with this please. My professor wants journal entries for every one of these dates.

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. Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1 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. Paid $125 cash for freight charges on the purchase of July 1. Sold merchandise that had cost $1,300 for $1,700 cash. Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Returned $200 of merchandise purchased on July 9 from Leight Co. and debited its account July 1 2 3 8 11 payable for that amount. Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. 12 Paid the balance due to Boden Company within the discount period. 16 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB 19 shipping point, invoice dated July 19. 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. Paid Leight Co. the balance due, net of discount. Received the balance due from Art Co. for the invoice dated July 19, net of discount. 30 Sold merchandise that cost $4,800 to Creek Co. for $7,000 under credit terms of 2/10, n/60, 31 FOB shipping point, invoice dated July 31. 21

Answer 1

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General Journal
Date	Account		Debit	Credit
Jul 1	Merchandise Inventory		$   6,000
		Accounts Payable—Boden		$       6,000
	Purchased goods, terms 1/15, n/30.
2	Accounts Receivable—Creek		$      900
		Sales		$           900
	Sold goods, terms 2/10, n/60.
2	Cost of Goods Sold		$      500
		Merchandise Inventory		$           500
	Record cost of the July 2 sale.
3	Merchandise Inventory		$      125
		Cash		$           125
	Paid freight on incoming goods.
8	Cash		$   1,700
		Sales		$       1,700
	Sold goods for cash.
8	Cost of Goods Sold		$   1,300
		Merchandise Inventory		$       1,300
	Record cost of the July 8 sale.
9	Merchandise Inventory		$   2,200
		Accounts Payable—Leight		$       2,200
	Purchased goods, terms 2/15, n/60.
11	Accounts Payable—Leight		$      200
		Merchandise Inventory		$           200
	Returned goods for credit.
12	Cash		$      882
	Sales Discounts ($900*2%)		$         18
		Accounts Receivable—Creek		$           900
	Received payment within discount period.
16	Accounts Payable—Boden		$   6,000
		Merchandise Inventory ($6,000*1%)		$             60
		Cash		$       5,940
	Paid for goods within discount period.
19	Accounts Receivable—Art		$   1,200
		Sales		$       1,200
	Sold goods, terms 2/15, n/60.
19	Cost of Goods Sold		$      800
		Merchandise Inventory		$           800
	Record cost of July 19 sale.
21	Sales Returns and Allowances		$      100
		Accounts Receivable—Art		$           100
	Issued credit for allowance on goods sold.
24	Accounts Payable—Leight		$   2,000
		Merchandise Inventory ($2,000*2%)		$             40
		Cash		$       1,960
	Paid for goods within discount period.
30	Cash		$   1,078
	Sales Discounts ($1,100*2%)		$         22
		Accounts Receivable—Art		$       1,100
	Received payment within discount period.
31	Accounts Receivable—Creek		$   7,000
		Sales		$       7,000
	Sold goods, terms 2/10, n/60.
31	Cost of Goods Sold		$   4,800
		Merchandise Inventory		$       4,800
	Record cost of July 31 sale.