Question

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.) Jul. 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. Jul. 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. Jul. 3 Paid $125 cash for freight charges on the purchase of July 1. Jul. 8 Sold merchandise that had cost $1,300 for $1,700 cash. Jul. 9 Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Jul. 11 Received a $200 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9. Jul. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. Jul. 16 Paid the balance due to Boden Company within the discount period. Jul. 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. Jul. 21 Issued a $100 credit memorandum to Art Co. for an allowance on goods sold on July 19. Jul. 24 Paid Leight Co. the balance due, net of discount. Jul. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount. Jul. 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. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income

Answer 1

Date	Particulars	Debit	Credit
Jul-01	Pruchase of Merchandice	6,000.00
	Accounts payable -Boden		6,000.00
02-Jul	Accounts receivable- Creek Co	900.00
	Sale of Merchendice		900.00
03-Jul	Freight Charges	125.00
	Cash		125.00
08-Jul	Cash	1,700.00
	Sale of Merchendice		1,700.00
09-Jul	Pruchase of Merchandice	2200
	Accounts Payable-Leight Co		2200
11-Jul	Accounts Payable-Leight Co	200.00
	Pruchase of Merchandice		200.00
12-Jul	Bank	882.00
	Cash Discount	18
	Accounts receivable- Creek Co		900.00
16-Jul	Accounts payable -Boden	6,000.00
	Cash Discount Received		60.00
	Bank		5,940.00
19-Jul	Accounts receivable-Art Co	1,200.00
	Sale of Merchendice		1200
21-Jul	Sale of Merchendice	100.00
	Accounts receivable-Art Co		100
24-Jul	Accounts Payable-Leight Co	2,000.00
	Cash Discount Received		40
	Bank		1960
30-Jul	Bank	1078
	Cash Discount	22
	Accounts receivable-Art Co		1100
31-Jul	Accounts receivable- Creek Co	7,000.00
	Sale of Merchendice		7000
	Trial Balance
	Particlulars	Debit	Credit
	Receivables
	Accounts receivable- Creek Co	7000