On May 10 Ritz Company sold merchandise for $6,000 and accepted the customer\'s

Question

On May 10 Ritz Company sold merchandise for $6,000 and accepted the customer's First Business Bank MasterCard. At the end of the day, the First Business Bank MasterCard receipts were deposited in the company's bank account. First Business Bank charges a 3.5% service charge for credit card sales.

Prepare the entry on Ritz Company's books to record the sale of merchandise. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

Date Account/Description Debit Credit
May 10 Notes receivableBad debts expenseCashSalesInterest receivableSales discountsAccounts receivableSales returns and allowancesService charge expenseInterest revenueAllowance for doubtful accounts
Bad debts expenseSales discountsAccounts receivableInterest revenueSales returns and allowancesSalesService charge expenseInterest receivableAllowance for doubtful accountsCashNotes receivable
Allowance for doubtful accountsInterest revenueCashSalesAccounts receivableInterest receivableNotes receivableSales discountsSales returns and allowancesBad debts expenseService charge expense

Explanation / Answer

Assuming this is wileyPlus or Aplia. Journal entry for Ritz company May 10 Cash 5790 Credit Card Expenses 210 (3.5% of 6000) Sales (or Credit Sales) 6000

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