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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 $1/15,$ n$/30,$ 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

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 $$1,300$ for $$1,700$ cash.

July $9$ Purchased merchandise from Leight Company for $$2,200$ under credit terms of $\frac{2}{15},$ n$/69,$ FOB destination, invoice dated

July $9.$

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 $$800$ to Art Company for $$1,20$ under credit terms of $\frac{2}{15},$ n$/60,$ FOB shipping point,

invoice dated July $19.$

July $21$ Gave a price reduction $($allowance$)$ of $$100$ 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 $$4,800$ to Creek Company for $$7,0$ under credit terms of $\frac{2}{10},$ n$/60,$ FOB shipping point,

invoice dated July $31.$

General Journal tab $-$ Journalize the merchandising transactions. The General Ledger, trial balance and schedules of

accounts receivable and accounts payable will be updated based on your entries.

General Ledger tab $-$ One of the advantages of general ledger software is that posting is done automatically. To see the

detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the

General Ledger tab.

Trial Balance tab $-$ General ledger software also automates the preparation of trial balances. A trial balance lists each

account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total

credits.

Schedule of Receivables tab $-$ General ledger software automates the balances for each of the customers' accounts.

Schedule of Payables tab $-$ General ledger software automates the balances for each of the suppliers' accounts.

Income Statement tab $-$ Prepare the income statement through the calculation of gross profit.

Impact on Income tab $-$ Indicate the impact each transaction had on net income.

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