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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 $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Creek Company for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500. July 3 Paid $125 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,300 for $1,700 cash. July 9 Purchased merchandise from Leight Company for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Returned $200 of merchandise purchased on July 9 from Leight Company and debited its account payable for that amount. July 11 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 $100 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 $4,800 to Creek Company for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.1

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 $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Creek Company for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500. July 3 Paid $125 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,300 for $1,700 cash. July 9 Purchased merchandise from Leight Company for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Returned $200 of merchandise purchased on July 9 from Leight Company and debited its account payable for that amount. July 11 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 $100 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 $4,800 to Creek Company for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.1

FINANCIAL ACCOUNTING
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 $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Creek Company for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500. July 3 Paid $125 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,300 for $1,700 cash. July 9 Purchased merchandise from Leight Company for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $200 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 $100 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 $4,800 to Creek Company for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. < View transaction list 1 2 3 Note: Enter debits before credits. Date July 02 4 5 6 7 Sold merchandise to Creek Company for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. Record entry General Journal 8 Clear entry 17 Debit Credit ( 1 2 View general ote: Enter debits before credits. 3 Record the cost of merchandise sold, $500. Date July 02 Record entry 4 5 6 General Journal Clear entry 7 8 Debit 17 Credit Journal entry worksheet View general < ( 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. Date July 01 2 3 4 5 6 7 8 ..... 17 Record entry 1 2 Date July 03 General Journal 3 Record entry Clear entry ote: Enter debits before credits. 4 5 General Journal 6 Clear entry Debit Paid $125 cash for freight charges on the purchase of July 1. Credit View general journal 7 8 ***** Debit 17 Credit View general
Transcribed Image Text: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 $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Creek Company for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500. July 3 Paid $125 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,300 for $1,700 cash. July 9 Purchased merchandise from Leight Company for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $200 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 $100 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 $4,800 to Creek Company for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. < View transaction list 1 2 3 Note: Enter debits before credits. Date July 02 4 5 6 7 Sold merchandise to Creek Company for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. Record entry General Journal 8 Clear entry 17 Debit Credit ( 1 2 View general ote: Enter debits before credits. 3 Record the cost of merchandise sold, $500. Date July 02 Record entry 4 5 6 General Journal Clear entry 7 8 Debit 17 Credit Journal entry worksheet View general < ( 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. Date July 01 2 3 4 5 6 7 8 ..... 17 Record entry 1 2 Date July 03 General Journal 3 Record entry Clear entry ote: Enter debits before credits. 4 5 General Journal 6 Clear entry Debit Paid $125 cash for freight charges on the purchase of July 1. Credit View general journal 7 8 ***** Debit 17 Credit View general
< 1 2 3 Record sale of merchandise for $1,700 cash. Note: Enter debits before credits. < Date July 08 Record entry 12 . 4 5 Note: Enter debits before credits. Date July 11 Record entry General Journal Clear entry General Journal 6 Clear entry 7 3 4 5 6 7 Returned $200 of merchandise purchased on July 9 from Leight Company and debited its account payable for that amount. 8 ..... Debit 8 17 Debit Credit View general Credit (12 2 3 View general Record cost of merchandise sold, $1,300. lote: Enter debits before credits. Date July 08 Record entry 3 4 Note: Enter debits before credits. Date July 12 Record entry 5 General Journal Clear entry General Journal Clear entry 6 7 Received the balance due from Creek Company for the invoice dated July 2, net of the discount. 9 8 ..... Debit Debit 17 17 Credit Credit < 1 2 3 View general View general Journal Note: Enter debits before credits. Date July 09 >< Purchased merchandise from Leight Company for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Record entry 1 3 4 ...... Date July 16 Record entry General Journal 5 6 Note: Enter debits before credits. 5 6 Clear entry 7 General Journal 7 8 Clear entry Paid the balance due to Boden Company within the discount period. 8 ..... 17 9 Debit 10 Debit Credit View general 17 Credit View genera
Transcribed Image Text:< 1 2 3 Record sale of merchandise for $1,700 cash. Note: Enter debits before credits. < Date July 08 Record entry 12 . 4 5 Note: Enter debits before credits. Date July 11 Record entry General Journal Clear entry General Journal 6 Clear entry 7 3 4 5 6 7 Returned $200 of merchandise purchased on July 9 from Leight Company and debited its account payable for that amount. 8 ..... Debit 8 17 Debit Credit View general Credit (12 2 3 View general Record cost of merchandise sold, $1,300. lote: Enter debits before credits. Date July 08 Record entry 3 4 Note: Enter debits before credits. Date July 12 Record entry 5 General Journal Clear entry General Journal Clear entry 6 7 Received the balance due from Creek Company for the invoice dated July 2, net of the discount. 9 8 ..... Debit Debit 17 17 Credit Credit < 1 2 3 View general View general Journal Note: Enter debits before credits. Date July 09 >< Purchased merchandise from Leight Company for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Record entry 1 3 4 ...... Date July 16 Record entry General Journal 5 6 Note: Enter debits before credits. 5 6 Clear entry 7 General Journal 7 8 Clear entry Paid the balance due to Boden Company within the discount period. 8 ..... 17 9 Debit 10 Debit Credit View general 17 Credit View genera
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