Question

journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory gross method. (Hint: It will help to identify each receivable and payable: for example, record the purchase on July 1 in Accounts system an Payable-Boden.) July 1 Purchased nerchand ise from Boden Company for $6, 308 under credit tents of 2/15, n/38, FOB shipping point, invoice dated July 1 arthadisto creek co. for $950 under credit terns of 2/10, n/6e, FoB shiping point, invoice dated July 2. The merchandise had cost $525 3 Paid $1e5 cash for freight charges on the purchase of July1 8 Sold merchandise that had cost $1,608 for $2,880 cash. 9 Purchased merchandise from Leight Co. for $2,480 under credi 11 Received a $488 credit nemor andun from Leight Co. for the return of part of the nerchandise purchased on July 9 12 Received the balance due from Creek co. fore the invoice dated July 2, net of the discount. 16 Paid the balance due to Boden Conpany within the discount period 19 Sold merchandise that cost $1,280 the invoice dated July 2, net of the discount to Art Co. for $1,880 under credit terns of 2/15, n/60, FOB shipping point, invoica dated uly 19 21 Issued a $388 credit menorandun to Art Co. for an allowance on goods sold on July 19. 24 Paid Leight Co. the balance due, net of discount. 38 Received the balance due from Art Co. for the invoice dated July 19, net of discount 31 Sold nerchandise that cost $5, 108 to Creek Co. for $7,8ea under credit terns of 2/18, n/6e, FOB shipping point, invoice dated July 31. Answer is not complete. Date General Journal Debit Credit July 01 Merchandise inventory 6,300

I need help preparing a journal entry for the merchandising transactions of Calebas. Also I need help understanding how to calculate the answer for problems like number 12 because I keep getting it wrong.

Answer 1

Ans- Journal Entries

No.	Date	General Journal	Debit ($)	Credit ($)
1	July 01	Merchandise Inventory	6,300
		To Accounts Payable - Boden Company		6,300
2	July 02	Accounts Receivable- Creek Company	950
		To Sales		950
3	July 02	Cost of Goods Sold	525
		To Merchandise Inventory		525
4	July 03	Merchandise Inventory	105
		To Cash		105
5	July 08	Cash	2,000
		To Sales		2,000
6	July 08	Cost of Goods Sold	1,600
		To Merchandise Inventory		1,600
7	July 09	Merchandise Inventory	2,400
		To Accounts Payable- Leight Co.		2,400
8	July 11	Accounts Payable- Leight Co.	400
		To Merchandise Inventory		400
9	July 12	Cash ($950*0.98)	931
		Sales Discount (950*0.02)	19
		To Accounts Receivable- Creek Co.		950
10	July 16	Accounts Payable - Boden Company	6,300
		To Cash ($6,300*0.98)		6,174
		To Merchandise Inventory ($6,300*0.02)		126
11	July 19	Accounts Receivable- Art Co.	1,800
		To Sales		1,800
12	July 19	Cost of Goods Sold	1,200
		To Merchandise Inventory		1,200
13	July 21	Sales Return and Allowances	300
		To Accounts Receivable - Art Co.		300
14	July 24	Accounts Payable- Leight Co. ($2,400-$400)	2,000
		To Cash ($2,000*0.98)		1,960
		To Merchandise Inventory ($2,000*0.02)		40
15	July 30	Cash ($1,800-$300=$1,500*.098)	1,470
		Sales Discount ($1,500*.02)	30
		To Accounts Receivable - Art Co.		1,500
16	July 31	Accounts Receivable- Creek Co.	7,000
		To Sales		7,000
17	July 31	Cost of Goods Sold	5,100
		To Merchandise Inventory		5,100

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