Prepare journal entries to record the following merchandisingtransactions of Cabela’s, which uses the perpetual inventory systemand the gross method. (Hint: It will help to identify eachreceivable and payable; for example, record the purchase on July 1in Accounts Payable—Boden.) Jul. 1 Purchased merchandise from BodenCompany for $6,000 under credit terms of 1/15, n/30, FOB shippingpoint, invoice dated July 1. Jul. 2 Sold merchandise to Creek Co.for $900 under credit terms of 2/10, n/60, FOB shipping point,invoice dated July 2. The merchandise had cost $500. Jul. 3 Paid$125 cash for freight charges on the purchase of July 1. Jul. 8Sold merchandise that had cost $1,300 for $1,700 cash. Jul. 9Purchased merchandise from Leight Co. for $2,200 under credit termsof 2/15, n/60, FOB destination, invoice dated July 9. Jul. 11Received a $200 credit memorandum from Leight Co. for the return ofpart of the merchandise purchased on July 9. Jul. 12 Received thebalance due from Creek Co. for the invoice dated July 2, net of thediscount. Jul. 16 Paid the balance due to Boden Company within thediscount period. Jul. 19 Sold merchandise that cost $800 to Art Co.for $1,200 under credit terms of 2/15, n/60, FOB shipping point,invoice dated July 19. Jul. 21 Issued a $100 credit memorandum toArt Co. for an allowance on goods sold on July 19. Jul. 24 PaidLeight Co. the balance due, net of discount. Jul. 30 Received thebalance due from Art Co. for the invoice dated July 19, net ofdiscount. Jul. 31 Sold merchandise that cost $4,800 to Creek Co.for $7,000 under credit terms of 2/10, n/60, FOB shipping point,invoice dated July 31. Requirement General Journal General LedgerTrial Balance Schedule of Receivables Schedule of Payables IncomeStatement Impact on Income