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Prepare the following journal entries Assume that you purchases $5,000 TV for your house from Sears...

Prepare the following journal entries

Assume that you purchases $5,000 TV for your house from Sears using your American Express. American Express charges a service fee of 5%. Make the journal entry that Sears should made to record this transaction.

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Answer #1

Recording of journal entry by Sears is as follows:-

(In American express, payment is to be received at later date when invoices are raised to american express and then the entry for receipt of cash is made.)

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