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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 $6,098 under credit teras of 1/15,n/38, Fo8 shipping point, Invoice dated July 1. July 2 Sold merchandise to Creek Company for $900 under credit terms of 2/10, n/60, Foe shipping point, invoice dated July 2. The merchandise bad cost \$500. July 3 Paid $125 cash for freight charges on the purchase of July 1. July 8 Sold nerchandise that had cost $1,300 for $1,700 cash. July 9 Purchased merchandise from Leight Conpany for $2,200 under credit terms of 2/15, n/60, foE destination, invoice dated July July 11 Returned $200 of merchandise purchased on July 9 fron Leight company and debited its account payable for that anount. July 12 Received the balance due from Creek. Company for the invoice dated July 2, net of the discount. Joly 16 Paid the balance due to Boden conpany within the discount perlod. July 19 Sold merchandise that cost $800 to Art Company for $1,200 under credit teras of 2/15, n/6e, Foe-shipping point, involce dated July 19 . July 21 Gove a price reduction (allowance) of $103 to Art Company for merchandise sold on July 19 and credited Art's accounts receivable for that amount. July 24 Paid Lelght Company the bolance due, net of discount. July 30 Recelved the bolance due from Art Company for the Involce dated July 19, net of discount. July 31 sold nerchandise that cost $4,800 to Creek. Coepany for $7,000 under credit teras of 2/10, n/60, fo8 shipping point, invoice dated July 31

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