Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system).

(1) Sold $20,000 of merchandise, which cost $15,000, on Mastercard credit cards. Mastercard charges a 5% fee.

(2) Sold $5,000 of merchandise, which cost $3,000, on an assortment of bank credit cards. These cards charge a 4% fee.

The journal entries are shown below:

1. Cash A/c Dr $19,000

Credit card expense A/c Dr $1,000 ($20,000 * 5%)

To Sales A/c $20,000

(Being cash is received)

Cost of goods sold A/c Dr $15,000

To Merchandise inventory A/c $15,000

(Being inventory is sold at cost)

2. Accounts receivable A/c Dr $4,800

Credit card expense A/c Dr $200 ($5,000 * 4%)

To Sales A/c $5,000

(Being merchandise is sold on credit)

Cost of goods sold A/c Dr $3,000

To Merchandise inventory A/c $3,000

(Being inventory is sold at cost)

Cash A/c Dr $4,800

To Accounts receivable $4,800

(Being cash is received)