Question

Levine Company uses the perpetual inventory system.

Apr.		8		Sold merchandise for $5,000 (that had cost $3,695) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee.
		12		Sold merchandise for $3,400 (that had cost $2,203) 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.)

Answer 1

Date	Account titles and Explanations	Debit	Credit
April 8	Cash	$ 4,800
	Credit Card Expense ( $ 5,000 x 4% )	$ 200
	Sales		$ 5,000
	(To record the merchandise Sold )
April 8	Cost of Goods Sold	$ 3,695
	Merchandise Inventory		$ 3,695
	(To record the Cost of merchandise Sold )
April 12	Cash	$ 3,315
	Credit Card Expense ( $ 3,400 x 2.5% )	$ 85
	Sales		$ 3,400
	(To record the merchandise Sold )
April 12	Cost of Goods Sold	$ 2,203
	Merchandise Inventory		$ 2,203
	(To record the Cost of merchandise Sold )