Journalize the following transactions assuming the company uses a perpetual inventory system:July 3.Sold merchandise on account for $3,750 terms n/eom. The cost of the goods sold was $2,000. 5.Issued a credit memo for $1,050 for merchandise returned from the sale on July 3. The cost of the merchandise returned was $610. 12.Received payment on account for the amount due on the sale of July 3, less the return of July 5. 17.Sold merchandise for $7,000 plus 6% sales tax to cash customers. The cost of the goods sold was $3,830.

1. July 3: Sold merchandise on account for $3,750, terms n/eom. The cost of goods sold was…

Answered: Journalize the following transactions…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 $6,800 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Creek Company for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $567. July 3 Paid $100 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $2,100 for $2,500 cash. July 9 Purchased merchandise from Leight Company for $3,000 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $1,000 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…
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July 3.	Sold merchandise on account for $3,750 terms n/eom. The cost of the goods sold was $2,000.
5.	Issued a credit memo for $1,050 for merchandise returned from the sale on July 3.
	The cost of the merchandise returned was $610.
12.	Received payment on account for the amount due on the sale of July 3, less the return of July 5.
17.	Sold merchandise for $7,000 plus 6% sales tax to cash customers. The cost of the goods sold was $3,830.