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.)
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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.
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
merchandise from Leight Co. for $2,200 under credit terms of 2/15, n/60, FOB
destination, invoice dated July 9.
11
Received
a $200 credit memorandum 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 terms of 2/15,
n/60, FOB shipping point, invoice dated July 19.
21
Issued
a $100 credit memorandum 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 terms of 2/10, n/60, FOB shipping point, invoice dated July 31.
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