Question

2 Saved Help Save & Exit Submit 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 $6,80e under credit terms of 2/15, n/38, FOB shipping point, invoice dated July 1. 2 sold merchandise to Creek Co. for $950 under credit terms of 2/10, n/6e, FOB shipping point, invoice dated July 2. The merchandise had cost $567. 3 Paid $110 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $2,1ee for $2,500 cash. 9 Purchased merchandise from Leight co. for $2,200 under credit terms of 2/15, n/68, FOB destination, invoice dated July 9. 11 Received a $200 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9. 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,eee to Art Co. for $1,500 under credit terms of 2/15, n/te, FOB shipping point, invoice dated July 19. Prev 1 of 2 Next >

please help create the journal entry

Answer 1

Date Debit credit July $ 6,800 General Journal Merchandise Inventory Accounts Payable - Boden (to record merchandise purchased) 6, 800 Julya 2 Accounts Receivable - Creek 950 $ 950 sales record sales) ( (to July 2 & 567 lost of goods sold Merchandise Insentory (to record cost of goods sold) & 567 July 3 110 Merchandise inventory Cash (to record freight charges paid) Julya Cash 4 2,500 sales $ 2,500 (to record sales) July & & 2, 100 Cost of goods sold Merchandise Inventory (to record cost of goods sold) $ 2,100

July a $ 2,200 Merchandise Inventory Alcounts Payable -Leight (to record merchandise pustento $ 2,200 July $ 200 Accounts Payable - Leight Merchandise Inventory (to record merchandise inventory 200 931 19 July 12 Cash sales discounts Accounts Receivable- Creek (to record due balance received) $ 950 $ 6,800 Boden July 16 Accounts Payable Merchandise Inventory Cash (To record due balance paid) $ 136 $ 6,664 July 19 Accounts Receivable - Art $ 1,500 Sales $ $ 1,500 (to record sales)

July 19 & 1,000 Cost of goods sold Merchandise Inventory (To record cost $ 1,000 of goods sold) & 250 July 21 Sales returns and allowances Accounts Receivable - Art (to recard allowance on goods, sold) & 250 & 2,000 July 24 Accounts Payable - height Merchandise Inventory Cash (To record due balance paid) $ 40 & 1960 July 30 $1,225 25 Cash sales discounts Accounts receivable - Art (to record due balance received) & 1250 July 31 Receivable - Creek & 7,300 Accounts Sales & 7300 (To record sales) July 31 $ 5,600 cost of goods sold merchandise Inventory (To record cost of goods sold) $ 5,600

Calculation: July 12: Sabes discount = $9.50 X 20% discount $ 19 Cash = & 950 - $ 19 discount $ 31 Merchandise Inventory = $ 6,800 X 2% discount July 16 $ 136 July 24: Merchandise Inventory Cash $ 6,800 - $ 136 $ 6, 664 ($2,200 – $200 credit received) x 2% discount & 2,000 X 2% $ 40 Cash $ 23000 - & 40 $ 1,960 sales discount (sales sales Return) x Discount% ( * 1,500 $250) x 24 $ 1,250 X 2/ $ 25 Cash $ 1,250 - $25 discount $ 1,225 July 30: