Question

Sales-Related Transactions, Including the Use of Credit Cards

Journalize the entries for the following transactions:

a. Sold merchandise for cash, $20,800. The cost of the goods sold was $12,480. (Record the sale first.)

b. Sold merchandise on account, $8,890. The cost of the goods sold was $5,330. (Record the sale first.)

c. Sold merchandise to customers who used MasterCard and VISA, $114,550. The cost of the goods sold was $68,730. (Record the sale first.)

d. Sold merchandise to customers who used American Express, $53,300. The cost of the goods sold was $31,980. (Record the sale first.)

e. Received and paid an invoice from National Clearing House Credit Co. for $6,450, representing a service fee paid for processing MasterCard, VISA, and American Express sales.

Answer 1

(A)

Cash               A/c                  Dr                                $ 20,800

To Sales         A/c      Cr                                                        $ 20,800

Cost of Merchandise Sold A/c      Dr                    $ 12,480

To Merchandise Inventory A/c      Cr                                $ 12,480

(B)

Accounts Receivable           A/c                  Dr        $ 8,890

To Sales         A/c Cr                                            $ 8,890

Cost of Merchandise Sold A/c      Dr                    $ 5,530

To Merchandise Inventory A/c      Cr                                $ 5,530

(C)

Cash               A/c                  Dr                                $ 1,14,550

To Sales         A/c      Cr                                                        $ 1,14,550

Cost of Merchandise Sold A/c      Dr                    $ 68,730

To Merchandise Inventory A/c      Cr                                $ 68,730

(D)

Cash               A/c                  Dr                                $ 53,300

To Sales         A/c      Cr                                                        $ 53,300

Cost of Merchandise Sold A/c      Dr                    $ 31,980

To Merchandise Inventory A/c      Cr                                $ 31,980

(E)

Credit Card Expense                        A/c      Dr        $ 6,450

To Cash A/c                          Cr                                            $ 6,450