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. July 1 Purchased merchandise fron toden Company for $6,000 under credit terns of 1/15, 130, Foe shipping point, invoice dated July 1. 2. Sold merchandise to Creek Co. for $900 under credit terns of 2/10, 1/60, FOS shipping point, Invoice dated July 2. The merchandise had cost 5500 3 Paid $125 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,300 for $1,700 cash. 9 Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, 1/60, FOB destination, invoice dated July 9. 11 Returned $200 of merchandise purchased on July 9 from Leicht Co. and debited its account payable for that amount. 12 Received the balance due fron 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 $100 to Art Co. for $1,200 under credit terms of 2/15, 1/60, FOU shipping point, Invoice dated July 19 21 Gave price reduction allowance) of $100 to Art Co. for merchandise sold on July 19 and credited Art's accounts receivable for that amount. 24 Pala Light Co. the balance due, net of discount 30 Received the balance due from Art Co. for the invoice dated July 19, set of discount 31 Sold merchandise that cost $4,600 to Creek Cou for $7,000 under Crealt terms of 2/10, 1/6, FOB shipping point, invoice dated July 31 NO 1 3 Answer is complete but not entirely correct. General Journal Merchandise inventory Accounts payable Boden July 01 Dotar 0,000 O 6.000 2 July 02 0 Accounts receivable Creek Wales 300 3 July 02 500 Cost of goods sold Merchandise viventory 500 . 4 July 03 Merchandise inventory Cash 135 00 125 5 July 00 Cash 0 1.700 1700 Connect - Class Me Calc book O factor Math: MATH-101AL > Final prompt Robinhood trading Saved Assignment Check my work mode : This shows what is correct or incorrect fe JUYU 5000 COSE or goods sold Merchandise inventory OS 500 4 July 03 125 Merchandise niventory Cash olo 125 5 July 08 1,700 Cash Sales slo 1,700 6 July 00 Cost of goods sold Merchandise inventory Olo 1,300 1300 7 July 03 2,200 Merchandise inventory Accounts payable--Leight olol 2,200 0 July 11 Accounts payable Light Sales retums and towances 200 200 9 July 12 Cash Sales discount Accounts receivable Creek OO 000 OOO 302 18 900 10 July 15 6.000 Accounts payable Bodon Interest payable Cash 60 5.940 11 July 19 Accounts recept Sales 1.200 0 1200 12 July 19 Cot of goods sold Merchandisewwentory olo 100 000 13 July 21 Some and allowances AccueN olo 100 Jy24 2.000 Seoscount oog 40 1 000 200 July 11 > Accounts payable-Leight Sales returns and allowances 200 9 July 12 Cash Sales discounts Accounts receivable Creek 30 882 18 900 10 July 16 6,000 Accounts payable--Boden Interest payable Cash 60 5,940 11 July 19 Accounts receivable-Art Sales SIS 1,200 1,200 12 July 19 800 Cost of goods sold Merchandise inventory so 800 13 July 21 100 Sales retums and allowances Accounts receivable Art Oo 100 14 July 24 a 2,000 Accounts payable--Leight Sales discounts Cash X 40 1.960 15 July 30 980 Cash Sales discounts Accounts receivable-Art 0 20 1,000 16 July 31 Accounts receivable-Creek Sales 7,000 9 0 7.000 17 July 31 Cost of goods sold Merchandise inventory 4,800 4.800