Question

1. Sales-Related Transactions, Including the Use of Credit Cards

   Journalize the entries for the following transactions:

   a. Sold merchandise for cash, $116,300. The The cost that is reported as an expense when merchandise is sold.cost of the merchandise sold was $72,000. (Record the sale first.)

   	Accounts Receivable Cash Credit Card Expense Sales Sales Discounts
   	Accounts Receivable Cash Cost of Merchandise Sold Sales Sales Discounts
   	Accounts Receivable Cost of Merchandise Sold Cash Merchandise Inventory Sales
   	Accounts Receivable Cash Cost of Merchandise Sold Merchandise Inventory Sales Discounts

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   b. Sold merchandise on account, $755,000. The cost of the merchandise sold was $400,000. (Record the sale first.)

   	Accounts Receivable Accounts Payable Merchandise Inventory Sales Sales Discounts
   	Accounts Receivable Cash Cost of Merchandise Sold Sales Sales Discounts
   	Accounts Payable Cash Cost of Merchandise Sold Sales Merchandise Inventory
   	Accounts Receivable Cash Cost of Merchandise Sold Sales Discounts Merchandise Inventory

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   c. Sold merchandise to customers who used MasterCard and VISA, $1,950,000. The cost of the merchandise sold was $1,250,000. (Record the sale first.)

   	Accounts Receivable Accounts Payable Cash Credit Card Expense Sales
   	Accounts Payable Cash Credit Card Expense Sales Sales Discounts
   	Accounts Payable Accounts Receivable Cost of Merchandise Sold Credit Card Expense Merchandise Inventory
   	Accounts Receivable Cash Cost of Merchandise Sold Credit Card Expense Merchandise Inventory

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   d. Sold merchandise to customers who used American Express, $330,000. The cost of the merchandise sold was $230,000. (Record the sale first.)

   	Accounts Receivable Cash Credit Card Expense Merchandise Inventory Sales
   	Accounts Receivable Cash Cost of Merchandise Sold Sales Sales Discounts
   	Accounts Receivable Cost of Merchandise Sold Credit Card Expense Merchandise Inventory Sales
   	Cash Cost of Merchandise Sold Credit Card Expense Merchandise Inventory Sales Returns and Allowances

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   e. Paid $81,500 to National Clearing House Credit Co. for service fees for processing MasterCard, VISA, and American Express sales.

   	Accounts Receivable Cash Cost of Merchandise Sold Credit Card Expense Merchandise Inventory
   	Accounts Receivable Cash Cost of Merchandise Sold Credit Card Expense Merchandise Inventory

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Answer 1

Sr.No.	Account Title	Debit	Credit
a	Cash	$1,16,300
	Sales		$1,16,300
	(To record sales of merchandise)
a	Cost of Merchandise Sold	$72,000
	Merchandise Inventory		$72,000
	(To record cost of merchandise sold)
b	Accounts Receivable	$7,55,000
	Sales		$7,55,000
	(To record sales of merchandise)
b	Cost of Merchandise Sold	$4,00,000
	Merchandise Inventory		$4,00,000
	(To record cost of merchandise sold)
c	Cash	$19,50,000
	Sales		$19,50,000
	(To record sales of merchandise)
c	Cost of Merchandise Sold	$12,50,000
	Merchandise Inventory		$12,50,000
	(To record cost of merchandise sold)
d	Cash	$3,30,000
	Sales		$3,30,000
	(To record sales of merchandise)
d	Cost of Merchandise Sold	$2,30,000
	Merchandise Inventory		$2,30,000
	(To record cost of merchandise sold)
e	Credit Card Expense	$81,500
	Cash		$81,500
	(To record service fees paid for processing of credit card transactions)