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 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 $6,600 under credit terms of 2/15, 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 $550.

3 paid $140 cash for freight charges on the purchase of july 1.

8 sold merchandise that had cost $1,900 for $2,300 cash.