Prepare journal entries to record the following merchandising transactions of Cabela$$s$,$ which uses the perpetual inventory system and the gross method.

July $1$ Purchased merchandise from Boden Company for $$6,600$ under credit terms of $2/15,$ n$/30,$ FOB shipping point, invoice dated July $1.$

July $2$ Sold merchandise to Creek Company for $$950$ under credit terms of $2/10,$ n$/60,$ FOB shipping point, invoice dated July $2.$ The merchandise had cost $$550.$

July $3$ Paid $$110$ cash for freight charges on the purchase of July $1.$

July $8$ Sold merchandise that had cost $$1,900$ for $$2,300$ cash.

July $9$ Purchased merchandise from Leight Company for $$2,500$ under credit terms of $2/15,$ n$/60,$ FOB destination, invoice dated July $9.$

July $11$ Returned $$500$ of merchandise purchased on July $9$ from Leight Company and debited its account payable for that amount.

July $12$ Received the balance due from Creek Company for the invoice dated July $2,$ net of the discount.

July $16$ Paid the balance due to Boden Company within the discount period.

July $19$ Sold merchandise that cost $$1,000$ to Art Company for $$1,500$ under credit terms of $2/15,$ n$/60,$ FOB shipping point, invoice dated July $19.$

July $21$ Gave a price reduction $($allowance$)$ of $$250$ to Art Company for merchandise sold on July $19$ and credited Art's accounts receivable for that amount.

July $24$ Paid Leight Company the balance due, net of discount.

July $30$ Received the balance due from Art Company for the invoice dated July $19,$ net of discount.

July $31$ Sold merchandise that cost $$5,400$ to Creek Company for $$7,100$ under credit terms of $2/10,$ n$/60,$ FOB shipping point, invoice dated July $31.$

Answer rating: 100% (QA)

To record the merchandising transactions of Cabelas here are the journal entries July 1 Merchandise ... View the full answer