Question

Exercise 9-2 Accounting for credit card sales Levine Company uses the perpetual inventory system. Prepare journal entries to record the following: credit card transactions of Levinc Company. Apr. 8 Sold merchandise for $8.400 (that had cost $6,000) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. 12 Sold merchandise for $5,600 (that had cost $3,500) and accepted the customer's Continental Card. Continental charges a 2.5% fee. Exercise 9-3 Sales on store credit card Z-Mart uses the perpetual inventory system and has its own credit card. Z-Mart charges a per-month inter- est fee for any unpaid balance on its store credit card at each month-end. Apr. 30 Z-Mart sold merchandise for $1,000 (that had cost $650) and accepted the customer's Z-Mart store credit card. May 31 Z-Mart recorded $4 of interest earned from its store credit card as of this month-end.

exercise 9-2 and 9-3 please

Answer 1

Z Mart Levine Company Journal Enteries Journal Enteries Debit in $ Credit in $ Debit in $ Credit in $ Particulars Particulars Date Date Apr-08 Cash a/c Dr. 8064 Apr-30 Accounts receivable a/c Dr. 1000 Credit Card Expense a/c Dr. To Sales 336 1000 To Sales (Sales on account) 8400 8400 x 0.96 = 8064 Cost of goods sold a/c To Merchandise Inventory 8400 x 0.04 = 336 Dr. 650 650 Cost of goods sold a/c To Merchandise Inventory (To record cost of goods sold) Dr. 6000 (To record cost of goods sold) May-31 Accounts receivable a/c To Interest revenue Dr. 4 4 Apr-12 Cash a/c (Interest revenue recorded) Dr. 5460 Credit Card Expense a/c Dr. 140 To Sales 5600 5600 x 2.5% =140 Cost of goods sold a/c Dr. 3500 To Merchandise Inventory 3500 (To record cost of goods sold)