Problem 4-1A Preparing journal entries for merchandising activities-perpetual system LO P1, P2 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 Duly 1 Purchased merchandise from Boden company for $5,100 under credit term of 2/15, 1/30. Fou shipping point involce dated July 1. 2 Sold merchandise to creek Co. for $950 under credit terms of 3/10, /60. FOB shipping point invoice dated July 2. The merchandise had cost $300 3 Paid $105 cash for freitht charges on the purchase of Duty 1. 8 Sold merchandise that had cost $1,400 for $1,800 cash 9 Purchased merchandise from Leight co for $2,900 under credit terns of 2/15, 1/60. FOI destination, Invoice dated July 9. 11 Returned $900 of merchandise purchased on July ofron Leight Co. and debited its account payable for that runt. 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 $800 to Art Co. for $1.200 under credit terms of 2/15, 1/60. Po shipping point, Invoice dated July 19. 21 Gave a price reduction allowance) of $200 to Art Co. for merchandise sold on July 19 and credited Art't accounts receivable for that amount 24 Paid Leight Co the balance due, net of discount 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount. 31 Sold merchandise that cost $4,900 to Creek Co. for $7,100 under credit terns of 2/10, 1/60, FOB shipping point, Invoice dated July 31. wy Merchandise inventory 800 13 July 21 200 Sales returns and allowances Accounts receivable-Art 200 14 July 24 2,600 Accounts payable-Leight Merchandise inventory Cash OOO 200 X 15 July 30 Accounts receivable-Art Sales discounts 0 % 17 4,900 July 31 Cost of goods sold Merchandise inventory 4.900