Chapter 9 Quiz × O ezto.mheducation.com/m.tpx0.7505760368198796 1522031371497 wo
ID: 2552769 • Letter: C
Question
Chapter 9 Quiz × O ezto.mheducation.com/m.tpx0.7505760368198796 1522031371497 wo credit cards in Levine Company uses the perpetual inventory system and allows customers to charging purchases With the Suntrust Bank Card, Levine receves an immedate credt to its account when it deposits sales recepts Suntrust assesses a 4% card that Levine accepts is the Continental Card Levine sends its weekdy bases ands paid by Contrertalabout a week laer or trental assesses a 25% for using its card service charge for credt pecond credt accumuliated receipts to Continental on a darge on sales accepted the customer's Suntrust Bank Cad. The Suntrust receipts are immediately deposited in Levine's bank 12 Sold merchandiee for $9,550 (that had cost $6, 188) and accepted the customers Continenta Card Transferred S9 550 of credit card receipts to Continental, requesting payment 20 Received Continentafs check for the Apri 12 billing less the service charge Prepare jounal entries to recond the above selected credit card transactions of Levine Company Rood your answers to the nearest whole dollar amount Journal entry worksheet Sold merchandise for $9,000 (that had cost $6,651) and accepted the customer's Suntrust Bank Card. The Suntrust receipts are immediately deposited in Levine's bank account debits befor Apr 08Explanation / Answer
SOLUTION
Date Account titles and Explanation Debit ($) Credit ($) April 8 Cash ($9,000-$360) 8,640 Credit card expense ($9,000*4%) 360 Sales 9,000 Cost of goods sold 6,651 Merchandise inventory 6,651 April 12 Accounts receivable- Continental ($9,550 - $239) 9,311 Credit card expense ($9,550*2.5%) 239 Sales 9,550 Cost of goods sold 6,188 Merchandise inventory 6,188 April 20 Cash 9,311 Accounts receivable- Continental 9,311