80.2K

Verified Solution

Link Copied!

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 Co pany for S6.000 under credit tens of 1/15, n/30, FOB shipping point, invoice dated July . 2 Sold merchandise to Creek Co. for $900 under eredit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The serchandise had cost $500 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 Derchandise fro-Leight Co. for $2.200 under credit teras of 2/15, n/60. FO& destination, invoice dated July . 11 Received a $200 credit memorandun from Leight Co. for the return of part of the merchandise purchased on July 9 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 $800 to Art Co. for $1.200 under credit teras of 2/15, n/60, FOB shipping point, invoice dated July 19. 21 Issued a $100 credit mesorandun to Art Co. for an allowance on goods sold on July 19. 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 $4. 800 to Creek Co. for $7,000 under credit teras of 2/10, n/60, FOB shipping point, invoice dated July 31 View transaction list Journal entry worksheet 17 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. Note: Enter debits before credits Debit Credit General Journal Date July 01

Answer & Explanation Solved by verified expert

See Answer