Question

Question 3 Partially correct Mark 7.17 out of 11.00 Remove flag Credit Card Sales Le Kai Arts sells quality art work, with prices for individual pieces ranging from $1,000 to $50,000. Sales are infrequent, typically only six to ten pieces per week. The following transactions occurred during the first week of June. Perpetual inventory is used. On June 1, sold an $1,800 framed print ($1,200 cost) to Likert Antiques on account, with 2/10, n/30 credit terms. On June 2, sold three framed etchings totaling $5,200 ($2,800 cost) to Annabelle Herrera, who used the United Merchants Card to charge the cost of the etchings. Le Kai mailed the credit card sales slip to United Merchants the same day. United Merchants will send a check within seven days after deducting a two percent fee. On June 4, sold a $3,600 oil painting ($2,000 cost) to Ryan Lalander, who paid with a personal check. On June 5, sold a $6,000 watercolor ($2,200 cost) to Julie and Bobby Herman, who used their Great American Bank Card to charge the purchase of the painting. Le Kai deposited the credit card sales slip the same day and received immediate credit in the company's checking account. The bank charged a one percent fee. On June 6, received payment from Likert Antiques for its June 1 purchase. On June 7, received a check from United Merchants for the June 2 sale. Required Prepare journal entries to record the Le Kai Arts transactions. (Round to the nearest dollar.) General Journal Date Description Debit Credit June 1 Accounts Receivable - Likert A. Ox Sales Revenue To record credit sales revenue. June 1 Cost of Goods Sold . Inventory To record cost of goods sold. June 2 Accounts Receivable - United! Credit Card Fee Expense Sales Revenue To record credit card sales. June 2 Cost of Goods Sold 0x Inventory To record cost of goods sold. June 4 Cash Sales Revenue . To record cash sales. June 4 Cost of Goods Sold 0 Inventory o To record cost of goods sold. June 5 Cash Credit Card Fee Expense Sales Revenue To record credit card sales. June 5 Cost of Goods Sold Inventory To record cost of goods sold. June 6 Cash Sales Discounts Accounts Receivable - Likert • To record collection from Likert Antiques. June 7 Cash Accounts Receivable - Unitec ✓ To record collection from United Merchants.

Answer 1

General entry

Date	Description	Dr	Cr
June 1	Account receivable -Likert A	1800
	Sales revenue		1800
	To record credit sales revenue
June 1	Cost of goods sold	1200
	Inventory		1200
June 2	Account receivables-United	5096
	Credit card fee	104
	Sales revenue		5200
June 2	Cost of goods sold	2800
	Inventories		2800
June 4	Cash	3600
	Sales Revenue		3600
June 4	Cost of goods sold	2000
	Inventory		2000
June 5	Cash	5940
	Credit fee Expense	60
	Sales revenue		6000
June 5	Cost of goods sold	2200
	Inventories		2200
June 6	Cash	1764
	sales Discount	36
	Account receivables Likert		1800
June 7	Cash	5200
	Account receivable -united		5200