July 01- Purchased merchandise from Boden Company for $6,700 under credit terms of 2/15; n / 30 , FOB shipping point, invoice dated July 1July 02-Sold merchandise to Creek Company for $950 under credit terms of 2/10 , n / 60 FOB shipping point, invoice dated July 2.July 02-Record the cost of merchandise sold, $558 .July 03-Paid $110 cash for freight charges on the purchase of July 1July 08-Record sale of merchandise for $2,400 cashJuly 08-Record cost of merchandise sold, $2,000.July 09-Purchased merchandise from Leight Company for $2,800 under credit terms of 2/15, n / 60 FOB destination , invoice dated July 9July 11-Returned $800 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,invoice net of the discountJuly 16-Paid the balance due to Boden Company within the discount periodJuly 19-Sold merchandise to Art Company for $1,200 under credit terms of 2/15 , n / 60 , FOB shipping point , invoice dated July 19 .July 19-Record cost of merchandise sold, $800July 21-Gave a price reduction (allowance ) of $200 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 discountJuly 30-Received the balance due from Art Company for the invoice dated July 19 , net of discountJuly 31-Sold merchandise to Creek Company for $7,400 under credit terms of 2/10, n / 60 , FOB shipping point, invoice dated July 31.July 31-Record cost of merchandise sold, $5,500 Problem 4-1A (Algo) Preparing journal entries for merchandising activities LO P1, P2Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system andthe gross method.July 1 Purchased merchandise from Boden Company for $6,700 under credit terms of 2/15, n/30, FOB shipping point, invoice datedJuly 1.July 2Sold merchandise to Creek Company for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. Themerchandise had cost $558.July 3 Paid $110 cash for freight charges on the purchase of July 1.July 8 Sold merchandise that had cost $2,000 for$2,400 cash.July 9 Purchased merchandise from Leight Companyfor $2,800 under credit terms of 2/15, n/60, FOB destination, invoice dated July9.July 11 Returned $800 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 $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoicedated July 19.July 21Gave a price reduction (allowance) of $200 to Art Company for merchandise sold on July 19 and credited Art's accountsreceivable 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 $5,500 to Creek Company for $7,400 under credit terms of 2/10, n/60, FOB shipping point, invoicedated July 31.View transaction listJournal entry worksheet<123456Search78.....< Prev1711 of 11PORTANext >

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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July 01- Purchased merchandise from Boden Company for $6,700 under credit terms of 2/15; n / 30 , FOB shipping point, invoice dated July 1 July 02- Sold merchandise to Creek Company for $950 under credit terms of 2/10 , n / 60 FOB shipping point, invoice dated July 2. July 02- Record the cost of merchandise sold, $558 . July 03- Paid $110 cash for freight charges on the purchase of July 1 July 08- Record sale of merchandise for $2,400 cash July 08- Record cost of merchandise sold, $2,000. July 09- Purchased merchandise from Leight Company for $2,800 under credit terms of 2/15, n / 60 FOB destination , invoice dated July 9 July 11- Returned $800 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,invoice net of the discount July 16- Paid the balance due to Boden Company within the discount period July 19- Sold merchandise to Art Company for $1,200 under credit terms of 2/15 , n / 60 , FOB shipping point , invoice dated July 19 . July 19- Record cost of merchandise sold, $800 July 21- Gave a price reduction (allowance ) of $200 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 to Creek Company for $7,400 under credit terms of 2/10, n / 60 , FOB shipping point, invoice dated July 31. July 31- Record cost of merchandise sold, $5,500

Problem 4-1A (Algo) Preparing journal entries for merchandising activities 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.
July 1 Purchased merchandise from Boden Company for $6,700 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 $558.
July 3 Paid $110 cash for freight charges on the purchase of July 1.
July 8 Sold merchandise that had cost $2,000 for
$2,400 cash.
July 9 Purchased merchandise from Leight Company
for $2,800 under credit terms of 2/15, n/60, FOB destination, invoice dated July
9.
July 11 Returned $800 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 $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice
dated July 19.
July 21
Gave a price reduction (allowance) of $200 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 $5,500 to Creek Company for $7,400 under credit terms of 2/10, n/60, FOB shipping point, invoice
dated July 31.
View transaction list
Journal entry worksheet
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