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22 December, 07:29

Levine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $9,300 (that had cost $6,873) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. 12 Sold merchandise for $5,000 (that had cost $3,240) and accepted the customer's Continental Card. Continental charges a 2.5% fee. Prepare journal entries to record the above credit card transactions of Levine Company

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  1. 22 December, 11:07
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    Dr Apr 08 Cash $8,928

    Dr Credit Card Expense $372

    Cr Sales $9300

    Apr 08 Cost of goods sold $6,873

    Merchandise inventory $6,873

    Dr Apr 12 Accounts receivable - Continental $4,875

    Dr Credit card expense $125

    Cr Sales $5,000

    Dr Apr 12 Cost of Goods Sold $3,240

    Cr Merchandise Inventory $3,240

    Explanation:

    Levine CompanyJournal entries

    Date General Journal Debit Credit

    Dr Apr 08 Cash $8,928

    Dr Credit Card Expense $372

    (4%*9300)

    Cr Sales $9300

    Apr 08 Cost of goods sold $6,873

    Merchandise inventory $6,873

    Dr Apr 12 Accounts receivable - Continental $4,875

    Dr Credit card expense $125

    (2.5%*5000)

    Cr Sales $5,000

    Dr Apr 12 Cost of Goods Sold $3,240

    Cr Merchandise Inventory $3,240
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