Question

Levine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $8,800 (that had cost...

Levine Company uses the perpetual inventory system.
Apr. 8 Sold merchandise for $8,800 (that had cost $6,503) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee.
12 Sold merchandise for $8,600 (that had cost $5,573) 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

Date General Journal Debit Credit

Apr 8 Cash $8,448

Credit card expenses $352

(8,800 * 4%)

Sales $8,800

(Sales of merchandise, receipt of cash

and credit card charges recorded

Apr 8. Cost of Goods sold $6,503

Merchandise Inventory $6,503

(Cost of goods sold recorded)

Apr 12. Cash $8,385

Credit card expense $215

(8,600 * 2.5%)

Sales $8,600

(Sales of merchandise, receipt of cash

and credit card charges recorded

Apr 12 Cost of goods sold $5,573

Merchandise Inventory $5,573

(Cost of goods sold recorded)