Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 $6,400 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Creek Company for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $533. July 3 Paid $125 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,700 for $2,100 cash. July 9 Purchased merchandise from Leight Company for $2,800 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $800 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 $800 to Art Company for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $200 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 $5,200 to Creek Company for $7,100 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. 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 $6,400 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Creek Company for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $533. July 3 Paid $125 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,700 for $2,100 cash. July 9 Purchased merchandise from Leight Company for $2,800 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $800 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 $800 to Art Company for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $200 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 $5,200 to Creek Company for $7,100 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.
Expert Answer:
Answer rating: 100% (QA)
Here are the journal entries for the merchandising transactions of Cabelas July 1 Merchandise Invent... View the full answer
Related Book For
Financial Accounting Information for Decisions
ISBN: 978-1259533006
8th edition
Authors: John J. Wild
Posted Date:
Students also viewed these accounting questions
-
Lafayette Company uses the first-in, first-out retail method of inventory caluation. The following information is available: Beginning inventory: P115,000 at cost; P300,000 at retail Purchases:...
-
Write survey/questionnaire in respect of the cleaning performance in a residential high rise building in order to improve the cleaning services. Survey/questionnaire should cover the entire cleaning...
-
Our company is marriott Hotels : How are the results stated in terms of the customer? How do customers perceive the service concept ? How will quality and cost be controlled? Subject : service...
-
Determine the largest force P that can be exerted at the jaws of the punch without exceeding a stress of 16 ksi on section m-n of the frame.
-
Do the contingent risks of interest rate, takedown, credit, and aggregate funding tend to increase the insolvency risk of an FI? Why or why not?
-
Hydrogen sulfide, H2S, is produced during decomposition of organic matter. When 0.5500 mol H2S burns to produce SO2(g) and H2O(l), 309.1 kJ of heat is released. What is this heat in kilocalories?
-
Sells Oil Company, a full cost company, has total capitalized costs in Venezuela of \($20,000,000\) and accumulated DD&A of \($4,000,000\). Proved reserves in Venezuela are 2,000,000 barrels....
-
Ranns Supply uses a perpetual inventory system. On January 1, its inventory account had a beginning balance of $7,740,000. Ranns engaged in the following transactions during the year. 1. Purchased...
-
Pay Your bills: A company audit showed that of 879 bills that were sent out, 627 were paid on time, 120 were paid up to 30 days late, 63 were paid between 31 and 90 days late, and 69 remained unpaid...
-
manufactured at the Arizona site, an impairment test is deemed appropriate. Management has acquired the following information for the assets at the plant: Cost Accumulated depreciation General's...
-
In an action movie, an actor runs at 8.0 m/s from a car explosion. If the explosion accelerates the actor 4.0 m/s for 2.2 s, how far will he travel due to the explosion?
-
]Solve the following perfect information game using backwards induc- tion. As a part of your answer, you need to state what each player chooses at each node and why. b 2 4,2 2 2 -12 } 3,0 0,2 n 5 2 e...
-
You have been given the job of organising the floor coverings for a new Granny Flat. Both bedrooms, hallway and living area are to be carpeted, whilst the kitchen, bathroom and laundry will be tiled....
-
Light of 600.0 nm is incident on a single slit of width 6.5 m. The resulting diffraction pattern is observed on a nearby screen and has a central maximum of width 3.5 m. What is the distance between...
-
Critically discuss the four change management approaches that farmers should adopt as part of digital transformation and include a brief description of each approach.
-
Find the optimal value of the objective function for the following problem by inspecting only its dual. ( Do not solve the dual by the simplex method. ) Minimize z = 1 0 x 1 + 4 x 2 + 5 x 3 subject...
-
Explain the regulation of the secretions of the small intestine.
-
Suppose a company has five-year, semiannual-coupon bonds carrying an 8 percent coupon rate that are selling for $1,200. What would be the aftertax cost of debt on these bonds if the appropriate tax...
-
Suppose a company has five-year, semiannual-coupon bonds carrying an 8 percent coupon rate that are selling for $1,200. What would be the beforetax cost of debt on these bonds if the appropriate tax...
-
Suppose a firm has 19 million shares of common stock outstanding with a par value of \($1.00\) per share. The current market price per share is \($18.35\). The firm has outstanding debt with a par...
Study smarter with the SolutionInn App