Danced - barracked soldier's cutting in (7)

I believe the answer is:

boogied

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'danced' is the definition.

'barracked soldier's cutting in' is the wordplay.
'barracked' becomes 'booed' (I can't justify this - if you can you should believe this answer much more).
'soldier's' becomes 'GI's' (GI can mean a US soldier).
'cutting' means to remove the last letter.
'in' indicates putting letters inside.
'gis' with its last letter taken away is 'gi'.
'booed' going around 'gi' is 'BOOGIED'.

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I've seen this clue in The Independent.

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