8 Sold merchandise for $3,500 (that had cost $2,587) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. 12 Sold merchandise for $5,200 (that had cost $3,370) 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. (Round your answers to the nearest whole dollar amount.)

Question

Business

Annika Compton

4 October, 11:23

8 Sold merchandise for $3,500 (that had cost $2,587) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. 12 Sold merchandise for $5,200 (that had cost $3,370) 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. (Round your answers to the nearest whole dollar amount.)

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Answers (1)

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Dario Knapp · Answer 1

Apr 08

Dr Credit card expense 3,500

Cr Sales 3,500

Apr 08

Dr Cost of goods sold 2,587

Cr Merchandise inventory 2,587

Apr 12

Dr Accounts receivable-Continental 5,070

Dr Credit card expense 130

Cr Sales 5,200

Apr 12

Dr Cost of goods sold 3,370

Cr Merchandise inventory 3,370

Apr 20

Dr Cash 5,070

Cr Accounts receivable-Continental 5,070

Explanation:

Journal Entry

Apr 08

Dr Credit card expense 3,500

Cr Sales 3,500

Apr 08

Dr Cost of goods sold 2,587

Cr Merchandise inventory 2,587

Apr 12

Dr Accounts receivable-Continental 5,070

Dr Credit card expense 130

Cr Sales 5,200

Apr 12

Dr Cost of goods sold 3,370

Cr Merchandise inventory 3,370

Apr 20

Dr Cash 5,070

Cr Accounts receivable-Continental 5,070

Apr 12 Credit card expense = $5,200 * 0.025 = $130