Ask Question
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.)

+4
Answers (1)
  1. 4 October, 13:46
    0
    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
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “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 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers