Problem $5-1$A $($Static$)$ Preparing journal entrles for merchandising actlvitles LO P$1,$ P$2$

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,$ under credit terms of $\frac{1}{15},\frac{n}{3},$ foB shipping point, invoice dated

July $1.$

July $2$ Sold merchandise to Creek Company for $$99$ under credit terms of $\frac{2}{10},\frac{n}{6},$ FOB shipping point, invoice dated July $2.$ The

merchandise had cost $$500.$

July $3$ Paid $$125$ cash for freight charges on the purchase of July $1.$

July $8$ Sold merchandise that had cost $$1,300$ for $$1,790$ cash.

July $9$ Purchased merchandise from Leight Company for $$2,260$ under credit terms of $2/15,$ n$/60,$ fob destination, invoice dated July

July $11$ Returned $$260$ 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 $$890$ to Art Company for $$1,20$ under credit terms of $\frac{2}{15},\frac{n}{6},$ FoB shipping point, invoice

dated July $19.$

July $21$ Gave a price reduction $($allowance$)$ of $$10$ 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.

dated July $31.$

Journal entry worksheet

Purchased merchandise from Boden Company for $$6,000$ under credit terms of

$\frac{1}{15},\frac{n}{30},$ FOB shipping point, invoice dated July $1.$

Note: Enter debits before credits.