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Question: prepare journal entries to record the following merchandising transactions of...

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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. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable—Boden.)

July : 1 Purchased merchandise from Boden Company for $6,500 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1.

july 2: Sold merchandise to Creek Co. for $1,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $542.

july 3: Paid $110 cash for freight charges on the purchase of July 1.

july 8: Sold merchandise that had cost $1,800 for $2,200 cash.

july 9: Purchased merchandise from Leight Co. for $2,800 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.

july 11: Received a $800 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9.

july 12: Received the balance due from Creek Co. 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 $1,000 to Art Co. for $1,500 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19.

july 21: Issued a $250 credit memorandum to Art Co. for an allowance on goods sold on July 19.

july 24: Paid Leight Co. the balance due, net of discount.

july 30: Received the balance due from Art Co. for the invoice dated July 19, net of discount.

july 31: Sold merchandise that cost $5,300 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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