Question

Check my work 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 July 1 Purchased merchandise from Boden Company for $6,200 under credit terms of 2/15, 1/30, FOB shipping point, Invoice dated July 1. 2 Sold merchandise to Creek Co. for 3950 under credit terms of 2/10, 1/60, FOB shipping point, Invoice dated July 2. The merchandise had cost $517. 3 Paid $115 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,500 for $1,900 cash. 9 Purchased merchandise from Leight Co. for $2,700 under credit terms of 2/15, 1/60, FOB destination, Invoice dated July 9. 11 Returned $700 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 $1,200 to Art Co. for $1,500 under credit terms of 2/15, 1/60, FOB shipping point, Invoice dated July 19. 21 Gave price reduction (allowance) of 5.300 to Art Co. for merchandise sold on July 19 and credited Art's accounts receivable for that amount. 24 Pald Leight Co. the balance due, net of discount. 30 Received the balance due fron Art Co. for the invoice dated July 19, net of discount. 31 Sold merchandise that cost $5,000 to Creek Co. for $7,100 under credit terms of 2/10, 1/60, FB shipping point, Invoice dated July 31.

Answer 1

- DATE TITLES DEBITS CREDITS JULY 1 MERCHANDISE INVENTORY DR $ 6200 To ACCOUNT PAYABLE $ 6200 (BEING THE INVENTORY PURCHASED ON CREDIT JULY 2 ACCOUNT RECENABLE DR $ 9.50 To SALES 9950 (BANG THE INVENTORY SOLD) (OST OF SALES TO MERCHANDIES INVENTORY DR S 517 $ 517 ACTUAL COST of INVENTORY) JULY 3 MERCHANDISE INVENTORY DR S115 TO CASH S 115 (BEING THE PRICE CHARLES HAS BEEN PAID) JULY 8 CASH DR $ 1900 TO SALE (BEING THE INVENTORY SOLD) $ 1900 3 1500 COST of GooD SOLO DR $ 1500 HO MERCHANDISE INVENTORY (BENG THE ACTUAL AMOUNT of INVENTORY

DR JULY 9 MERCHANDISE INVENTORY TO ACCOUNT PAYABLE-LEIGHT LO $ 2700 $2900 (BR104 THE MERCHANDISE JAWENTORY PURCHASED) DR $ 700 JULY ALOUNT PAYABLE-LEIGHT ( TTO MERCHANDISE INVENTORY (BE14 THE INVENTORY PURCHASED RETURN) 1700

$931 JULY 12 $ 19 15950 CASH SALES DISCOUNT DR TO ACCOUNT RECEIVABLE - CREEK (BEING THE PAYMENT IS RECEIVED OF JULY 2) JULY 16 ACCOUNT PAYABLE-BODEN DR $(200 TO NERIHANDISE INVENTORY TO CASH (Being THE BALANCE Pnio To Boden COMPANY $8024

JULY 19 $ 1800 ACCOUNT RECEWABLE TO SALES (GEING 7ME MERCHANDISE SOLO $ 1800 DR S 1200 COST OF GOOD SOLO TO SALES MERCHANDISE INVENTORY (ACTUAL AMOUNT OF INVENTORY) $ 120 JULY 21 SALES RETURN MNO ALLOW ANCE TO ACCOUNT RECEIVABLE - ART CO DR 1300 S 300 (BRING THE PRICE REDUCTION LIVEN TO ART COMPANY July 24 ACCOUNT PAYALLE-LEIGHT ( TO MERCHANDISE INVENTORY DR S2000 $40 TO CASH $1960 (BEING THE AMOUNT PAID TO LE16H1-4) $ 1500 JULY 30 CASH DR $1470 SALES DISCOUNT DR $ 30 TO ACCOUNT RECEIVABLA ART (O (BEING THE GALACE Reclive o fROMANTC) JULY 31 ACCOUNT RECEIVABLE - CREEK DL $7100 TO SALES BEING THE INVENTORY San To CREEK CO) Cost Of GooO SOLO DR $ 5000 TO MERCHANDISE INVENTORY ACTUAL AMOUNT OF INUENTORY $ 7100 S 50D