In: Accounting
Levine Company uses the perpetual inventory system.
Apr. | 8 | Sold merchandise for $9,300 (that had cost $6,873) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. | ||
12 | Sold merchandise for $4,000 (that had cost $2,592) 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.)
Solution:
Date | General Journal | Debit | Credit |
April. 8 | Cash | $ 8,928 | |
Card Fee - Suntrust Bank Card [9300*4% | $ 372 | ||
Sales Revenue | $ 9,300 | ||
(To record Sold merchandise ) | |||
April. 8 | Cost of Goods Sold | $ 6,873 | |
Inventory | $ 6,873 | ||
(To record Cost of merchandise sold) | |||
April. 12 | Cash | $ 3,900 | |
Card Fee - Cooper Card [4000*2.5%] | $ 100 | ||
Sales Revenue | $ 4,000 | ||
(To record Sold merchandise ) | |||
April. 12 | Cost of Goods Sold | $ 2,592 | |
Inventory | $ 2,592 | ||
(To record Cost of merchandise sold) | |||