Question

Journalize the entries for the following transactions. Refer to the Chart of Accounts for exact wording of account titles. (Note: the company uses a clearinghouse to take care of all bank as well as non-bank credit cards used by its customers.)

Mar.	1	Sold merchandise for cash, $31,600. The cost of the merchandise sold was $12,640.
	10	Sold merchandise on account, $259,000. The cost of the merchandise sold was $103,600.
	12	Sold merchandise to customers who used MasterCard and VISA, $153,000. The cost of the merchandise sold was $61,200.
	17	Sold merchandise to customers who used American Express, $73,800. The cost of the merchandise sold was $29,520.
	31	Paid $8,000, to National Clearing House Credit Co. for service fees for processing MasterCard, VISA, and American Express sales.

Answer 1

JOURNAL ENTRIES

DATE	PARTICULARS	DEBIT	CREDIT
March 01	Cash A/C To Sales Revenue A/C (Being cash received for Sale of Merchandise)	$31600	$31600
	Cost of Sales A/C To Merchandise A/C (Being Quantity of Merchandise reduced against Cost of sales)	$12640	$12640
March 10	Accounts Receivable A/C To Sales Revenue A/C (Being Merchandise sold on account where cash will be received in future date)	$259000	$259000
	Cost of Sales A/C To Merchandise A/C (Being quantity of Merchandise reduced against Cost of sales)	$103600	$103600
March 12	Accounts Receivable - Mastercard/Visa A/C To Sales Revenue A/C (Being Merchandise sold to customers in credit who used Mastercard or Visa)	$153000	$153000
	Cost of Sales A/C To Merchandise A/C (Being quantity of Merchandise reduced against Cost of sales)	$61200	$61200
	Cash A/C To Accounts Receivable - Mastercard/ Visa A/C (Being cash received from Mastercard/Visa against sale of merchandise later)	$153000	$153000
March 17	Accounts Receivable - American Express A/C To Sales Revenue A/C (Being Merchandise sold to customers in credit who used American Express)	$73800	$73800
	Cost of Sales A/C To Merchandise A/C (Being Quantity of Merchandise reduced against Cost of sales)	$29520	$29520
	Cash A/C To Accounts Receivable - American Express A/C (Being cash received from American Express against sale of merchandise later)	$73800	$73800
March 31	National Clearing House Credit Co. A/C To Cash A/C (Being Service fees for processing of Mastercard, VISA and American Express paid to National Clearing House Credit Co.)	$8000	$8000