Question

Record the following transactions of Lisa’s Fashion Boutique in a general journal. Lisa's Fashion Boutique operates in a state with 8% sales tax. (Round your intermediate calculations and final answers to 2 decimal places):

DATE		TRANSACTIONS
2019
Feb.	2	Sold merchandise for cash totaling $3,300 to customers using bank credit cards. Record the 8 percent discount on credit card sales at time of sale.
	15	Sold merchandise totaling $3,700 to customers using American Express.
	20	Received amount due from American Express, less their 9 percent discount, for sales made by customers using American Express on February 15.

• Sold merchandise for cash totaling $3,300 to customers using bank credit cards. Record the 8 percent discount on credit card sales at time of sale.
• Sold merchandise totaling $3,700 to customers using American Express.
• Received amount due from American Express, less their 9 percent discount, for sales made by customers using American Express on February 15.

Answer 1

Answer :-
General Journal For Lisa's Fashion as under,
Date	Particulars	Amount Debit($)	Amount Credit ($)
2nd Feb'19	Cash A/c Dr(W.N.1)	3,493
	Credit Card Expenses A/c Dr	71
	To Sales A/c		3,300
	To Sales tax payable A/c		264
	(Being Entry passed for sales & discount on credit card sales)
15th Feb'19	Accounts Receivable A/c Dr{3700 + (3700*8%)}	3,996
	To Sales A/c		3,700
	To Sales tax payable A/c(3700*8%)		296
	(Being credit sales entry recorded)
20th Feb'19	Credit Card Expenses A/c Dr(3996*9%)	359.64
	Cash A/c Dr {3,996 -(3,996*9%)}	3636.36
	To Accounts Receivable A/c		3996
	(Being cash received from Accounts receivable)
	Working Note (W.N 1)
	Calculation of Cash to be received from Feb 2nd
	Particulars	Amount($)
	Sales	3,300
	Add: Sales tax payable	264
	(3,300*8%)
		3,564
	Less: Credit Card Expenses	(71.28)
	(3,564*2%)
	Cash Received	3,492.72