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Accounting exam_1.docm (1).pdf

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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 receiva ... ble and payable; for example, record the purchase on July 1 in Accounts Payable—Boden.) 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. 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. 3 Paid $125 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,300 for $1,700 cash. 9 Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. 11 Received a $200 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. 16 Paid the balance due to Boden Company within the discount period. 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. 21 Issued a $100 credit memorandum to Art Co. for an allowance on goods sold on July 19. 24 Paid Leight Co. the balance due, net of discount. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount. 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. No Date General Journal Debit Credit 1 July 01 Merchandise inventory 6,000 Accounts payable—Boden 6,000 2 July 02 Accounts receivable—Creek 900 Sales 900 3 July 02 Cost of goods sold 500 Merchandise inventory 500 4 July 03 Merchandise inventory 125 Cash 125 5 July 08 Cash 1,700 Sales 1,700 6 July 08 Cost of goods sold 1,300 Merchandise inventory 1,300 7 July 09 Merchandise inventory 2,200 Accounts payable—Leight 2,200 8 July 11 Accounts payable—Leight 200 Merchandise inventory 200 9 July 12 Cash 882 Sales discounts 18 Accounts receivable—Creek 900 10 July 16 Accounts payable—Boden 6,000 Merchandise inventory 60 Cash 5,940 11 July 19 Accounts receivable—Art 1,200 Sales 1,200 12 July 19 Cost of goods sold 800 Merchandise inventory 800 13 July 21 Sales returns and allowances 100 Accounts receivable—Art 100 14 July 24 Accounts payable—Leight 2,000 Merchandise inventory 40 Cash 1,960 15 July 30 Cash 1,078 Sales discounts 22 This study source was downloaded by 100000822447745 from CourseHero.com on 07-16-2022 10:24:42 GMT -05:00 https://www.coursehero.com/file/34043264/Accounting-exam-1docm/Accounts receivable—Art 1,100 16 July 31 Accounts receivable—Creek 7,000 Sales 7,000 17 July 31 Cost of goods sold 4,800 Merchandise inventory [Show More]

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