Question

journalize the entries for the following transactions. Refer to the chart of accounts for exact wording of account titles. (Non as well as non-bank credit cards used by its customers.)
Mar 1 Sold merchandise for cash, $116300. The cost of the merchandise sold was $72000.
Mar 10 Sold merchandise on account, $755,000. The cost of the merchandise sold was $400,000.
Mar 12 Sold merchandise to customers who used MasterCard and Visa, $1,950,000. The cost of the merchandise sold was $1,250,000.
Mar 17 Sold merchandise to customers who used American Express, $330,000. The cost of the merchandise sold was $230,000.
Mar 31 Paid $81,500 to National Clearing House Credit Co. for service fees for processing MasterCard, Visa

Determining amounts to be paid on invoices

Determine the amounts to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.

Merchandise freight paid by seller.
a. $14,000 - FOB destination, n/30
b. $9900 - FOB shipping point, 2/10, n/30
c. $8500 - FOB shipping point, 2/10, n/30
d. $4600 - FOB shipping point, 2/10, n/30
e. $2800 - FOB destination, 1/10, n/30

Returns and Allowances
a. $700
b. $1200
c. $800
d. $600
e. -

Answer 1

	Note: As the chart of accounts is not given, respective account names have been taken.
Date	Account Name	Debit	Credit
March 1.	Cash	116300
	Merchandise		72000
	Profit on sale of merchandise		44300
	Being merchandise sold for cash
March 10.	Bank	755000
	Merchandise		400000
	Profit on sale of merchandise		355000
	Being merchandise sold on account
March 12.	Bank	1950000
	Merchandise		1250000
	Profit on sale of merchandise		700000
	Being merchandise sold
March 17.	Bank	330000
	Merchandise		230000
	Profit on sale of merchandise		100000
	Being merchandise sold
March 31.	Processing fees	81500
	Bank		81500
	Being service fees paid for processing the payments made through cards
Merchandise freight	Returns and allowances	Discount	Net payment
14000	700	n/30	13300
9900	1200	2/10, n/30	(9900-1200)-((9900-1200)*2%) = 8526
8500	1200	2/10, n/30	(8500-1200)-((8500-1200)*2%) = 7154
4600	600	2/10, n/30	(4600-600)-((4600-600)*2%) = 3920
2800			2800