Prepare journal entries for the following credit card sales transactions (the co
ID: 2549996 • Letter: P
Question
Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system). Sold $38,000 of merchandise, that cost $29,400, on MasterCard credit cards. MasterCard charges a 5% fee. Sold $6,800 of merchandise, that cost $3,900, on an assortment of bank credit cards. These cards charge a 4% fee. Worksheet.... 1. (1a) Sold $38,000 of merchandise on MasterCard credit cards. MasterCard charges a 5% fee. 2.(1b) Record the cost of the sale, $29,400. 3. 2a) Sold $6,800 of merchandise on an assortment of bank credit cards. These cards charge a 4% fee. 4. (2b) Record the cost of the sale, $3,900.
Explanation / Answer
Solution :-
1. (a) Cash A/c Dr. 36100
credit card exp Dr 1900
To Sales. 38000
(b) Cost of goods dold A/c Dr 29400
To Inventory 29400
2. (a)Cash A/c Dr. 6528
credit card exp Dr. 272
To Sales. 6800
(b) Cost of goods sold A/c Dr. 3900
To Inventory. 3900
Note:- Assuming that net cash should be immedietaly collected.