Question

Exercise 9-2 Accounting for credit card sales LO C1 Levine Company uses the perpetual inventory system and allows customers to use two credit cards in charging purchases. With the Suntrust Bank Card, a 4% service charge for credit card sales is assessed. The second credit card that Levine accepts is the Continental Card. Continental assesses a 2.5% charge on sales for using its card. Apr. 8 Sold merchandise for $4,600 (that had cost $2,956) and accepted the customer's Suntrust Bank Card. 12 Sold merchandise for $8,400 (that had cost $5,443) and accepted the customer's Continental Card. Prepare journal entries to record the above selected credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet Sold merchandise for $4,000 and accepted the customer's Suntrust Bank Card. Note: Enter debits before credits General Journal Debit Credit Date Apr 08 Record entry Clear entry View general journal

Answer 1

Date	General Journal	Debit	Credit
Apr-08	Cash ($ 4,000 * 96% )	$ 3,840
	Credit card expense ($4,000*4 %)	$ 160
	Sales		$ 4,000
	(To record sales of Merchandise )
Apr-08	Cost of goods sold	$ 2,956
	Merchandise inventory		$ 2,956
	(To record cost of Merchandise )
Apr-12	Cash ($ 8,400 * 96% )	$ 8,064
	Credit card expense ($8,400*4 %)	$ 336
	Sales		$ 8,400
	(To record sales of Merchandise )
Apr-12	Cost of goods sold	$ 5,443
	Merchandise inventory		$ 5,443
	(To record cost of Merchandise )