Question

Exercise 7-2 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 25% charge on sales for using its card Sold nerchandise for $8,488 (that had cost $6,288) and accepted the custoner's Suntrust 12 Sold nerchandise for $9,680 (thet had cost $5,221) and saccepted the custoner's Cont inental Card Apr 8 Bank Card Prepare journal entries to record the above selected credit card transactions of Levine Company, (Round your answers to the nearest whole dollar amount) 3 Answer is not complete. Debit Credit Ppr 08 Cash Credit card axpense Sales 340 6.2060 Apr 00 Cost of goods sold Merchandise inventony Prev 1 or1Nex

Answer 1

No.	Date	Accounts title	Dr	Cr
1	Apr 8	Cash [8400*(100%-4%)]	8064
		Credit card expense [8400*4%]	336
		To sales		8400
2	Apr 8	Cost of goods sold	6000
		To merchandise inventory		6000
3	Apr 12	Cash [9600 * (100%-2.5%)]	9360
		Credit card expense [9600*2.5%]	240
		To sales		9600
	Apr 12	Cost of goods sold	6221
		To merchandise inventory		6221