Question

Levine Company uses the perpetual Inventory system.

Apr. 8 Sold merchandise for $5,700 (that had cost $4,212) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee.
12 Sold merchandise for $5,600 (that had cost $3,629) 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.)

Answer 1

Journal entries are given below

Step-by-step explanation:

April 8

Sales

DEBIT CREDIT

Cash $5,472

Credit Expense (5700x4%) $228

Sales Revenue $5,700

Cost of Sales

DEBIT CREDIT

Cost of goods sold $4,212

Inventory $4,212

April 12

Sales

DEBIT CREDIT

Cash $5,460

Credit card expense (5600x2.5%) $140

Sales Revenue $5,600

Cost of sales

DEBIT CREDIT

Cost of goods sold $3,629

Inventory $3,629