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e https://newconnect.mheducation.com/flow/connect.html r Re-Take Test Chapter 5

ID: 2517797 • Letter: E

Question

e https://newconnect.mheducation.com/flow/connect.html r Re-Take Test Chapter 5 n Maru Calderon Calde n Maru Calderon rs 7, 8 and 9 6 Maru Calderon D New Tab Saved Help Save & Exit Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system). 1. Sold $24,000 of merchandise, that cost $18,200, on MasterCard credit cards. MasterCard charges a 5% fee. 2. Sold $5,400 of merchandise, that cost $3.200, on an assortment of bank credit cards. These cards charge a 4% fee. View transaction list Journal entry worksheet 4 Sold $24,000 of merchandise on MasterCard credit cards. MasterCard charges a 5% fee.

Explanation / Answer

Answer

Journal Entry

General Journal

Debit

Credit

Working

1

Cash

$           22,800.00

[24000 x 95%]

Credit Card expenses/charges

$             1,200.00

[24000 x 5%]

Sales Revenue

$         24,000.00

[24000 x 100%]

2

Cost of Goods Sold

$           18,200.00

Inventory

$         18,200.00

3

Cash

$             5,184.00

[5400 x 96%]

Credit Card expenses/charges

$                 216.00

[5400 x 4%]

Sales Revenue

$            5,400.00

[5400 x 100%]

4

Cost of Goods Sold

$             3,200.00

Inventory

$            3,200.00

Journal Entry

General Journal

Debit

Credit

Working

1

Cash

$           22,800.00

[24000 x 95%]

Credit Card expenses/charges

$             1,200.00

[24000 x 5%]

Sales Revenue

$         24,000.00

[24000 x 100%]

2

Cost of Goods Sold

$           18,200.00

Inventory

$         18,200.00

3

Cash

$             5,184.00

[5400 x 96%]

Credit Card expenses/charges

$                 216.00

[5400 x 4%]

Sales Revenue

$            5,400.00

[5400 x 100%]

4

Cost of Goods Sold

$             3,200.00

Inventory

$            3,200.00