Journalize the entries for the following transactions. Refer to the Chart of Acc
ID: 2391076 • Letter: J
Question
Journalize the entries for the following transactions. Refer to the Chart of Accounts for exact wording of account titles. (Note: The company uses a clearinghouse to take care of all bank as well as non-bank credit cards used by its customers.)
Journalize the entries for the transactions on December 31. Refer to the Chart of Accounts for exact wording of account titles.
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JOURNAL
ACCOUNTING EQUATION
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A. Sold merchandise for cash, $25,000. The cost of the goods sold was $17,500. B. Sold merchandise on account, $98,000. The cost of the goods sold was $58,800. C. Sold merchandise to customers who used MasterCard and VISA, $475,000. The cost of the goods sold was $280,000. D. Sold merchandise to customers who used American Express, $63,000. The cost of the goods sold was $39,000. E. Received and paid an invoice from National Clearing House Credit Co. for $13,450, representing a service fee paid for processing MasterCard, VISA, and American Express sales.Explanation / Answer
Journal entries recording above transactions
S.no Date Description P.R Debit Credit 1 Dec 31 Cash 10 25000 2 Sales 25000 3 Cost of merchandise sold 17500 4 Merchandise Inventory 17500 5 Accounts Receivables 98000 6 Sales 98000 7 Cost of merchandise sold 58800 8 Merchandise Inventory 58800 9 Cash 475000 10 Sales 475000 11 Cost of merchandise sold 280000 12 Merchandise Inventory 280000 13 Cash 63000 14 Sales 63000 15 Cost of merchandise sold 39000 16 Merchandise Inventory 39000 17 Credit card expense 13450 18 Cash 13450Related Questions
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