Question

Prepare journal entries to record the following merchandising transactions of Cabela’s, which uses the perpetual inventory system and the gross method.

Answer 1

To record merchandising transactions in the Cabela's company using the perpetual inventory system and the gross method, make journal entries for each transaction, such as purchasing inventory on credit or selling merchandise on credit.

Step-by-step explanation:

Journal Entries to Record Merchandising Transactions

To record merchandising transactions in the Cabela's company using the perpetual inventory system and the gross method, you would need to make journal entries for each transaction. For example, if Cabela's purchases inventory on credit, you would make the following journal entry: Inventory (Debit)Accounts Payable (Credit)Similarly, if Cabela's sells merchandise on credit, you would make the following journal entry: Accounts Receivable (Debit)Sales Revenue (Credit)Cost of Goods Sold (Debit)Inventory (Credit)These journal entries will help you keep track of the transactions and maintain accurate financial records.