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 from Boden Company for $6,600 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, 1/60, FOB shipping point, invoice dated July 3 Paid $125 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,900 for $2,300 cash. 9 Purchased merchandise from Leight Co. for $2,700 under credit terms of 2/15, 1/60, FOB destination, invoice dated July 9. 11 Returned $700 of merchandise purchased on July 9 from Leight Co. and debited its account payable for that amount. 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 $1,200 to Art Co. for $1,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. 21 Gave a price reduction (allowance) of $300 to Art Co. for merchandise sold on July 19 and credited Art's 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 $5,400 to Creek Co. for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Journal entry worksheet Purchased merchandise from Boden Company for $6,600 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. Note: Enter debits before credits. General Journal Debit Credit Date July 01 Record entry Clear entry View general journal Journal entry worksheet Paid $125 cash for freight charges on the purchase of July 1. Note: Enter debits before credits. Date General Journal Debit Credit July 03 Record entry Clear entry View general journal Journal entry worksheet Record sale of merchandise for $2,300 cash. Note: Enter debits before credits. General Journal Debit Credit Date July 08 Record entry Clear entry View general journal Journal entry worksheet Record cost of merchandise sold, $1,900. Note: Enter debits before credits. Date General Journal Debit Credit July 08 Record entry Clear entry View general journal Journal entry worksheet Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. Note: Enter debits before credits. Date General Journal Debit Credit July 12 Record entry Clear entry View general journal Journal entry worksheet Paid the balance due to Boden Company within the discount period. Note: Enter debits before credits. Date General Journal Debit Credit July 16 Record entry Clear entry View general journal Journal entry worksheet