Question

Levine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $5,500 (that had cost $4,065) and accepted the customer's Suntrust Bank Card. Suntrust charges a 48 fee. 12 Sold merchandise for $3,200 (that had cost $2,074) and accepted the customer's Continental Card. Continental charges a 2.58 fee. Prepare journal entries to record the above credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet 2 3 4 Sold merchandise for $5,500 and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. Note: Enter debits before credits. Date General Journal Debit Credit Apr 08 Record entry Clear entry View general journal

Answer 1

Solution

Date	General journal	Debit	Credit
08-Apr	Cash	$ 5,280.00
	Credit card Charges	$     220.00
	Sales revenue		$    5,500.00
	(goods sold)
08-Apr	Cost of Goods Sold	$ 4,065.00
	Merchandise Inventory		$    4,065.00
	(Cost of Goods sold Recorded)
12-Apr	Cash	$ 3,120.00
	Credit card Charges	$        80.00
	Sales revenue		$    3,200.00
	(goods sold)
12-Apr	Cost of Goods Sold	$ 2,074.00
	Merchandise Inventory		$    2,074.00
	(Cost of Goods sold Recorded)

In perpetual inventory system, Cost of goods sold is recorded every time sales is made.