marks Window Help 8?72%?Thu 6:29 PM a ereader.chegg.com Marketplace Windows Medi

Question

marks Window Help 8?72%?Thu 6:29 PM a ereader.chegg.com Marketplace Windows Media Suggested Sites See What's Hot Web Slice Gallery Google Apple Disney ESPN Yahoo! Premium Paradise Kick..ker Releases Boku No Her Bleach Chap Batman C201.- Thanos (201 : ; Cre Pioces. I , https:/borta. )o Seaso..y Problem 7-1B Sales on account and credit card sales C1 Archer Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Commerce Bank or Goldman. Commerce Bank deducts a 3% service charge for sales on its credit card, when custormers use the Goldman card, a 2% service charge is deducted from sales on its card. Archer completed the following transactions in August. Aug. 4 Sold $3,700 of merchandise on credit that had cost $2,000) to McKenzie Carpenter. 10 Sold S5,200 of merchandise (that had cost $2,800) to customers who used their Commerce Bank credit cards. 11 Sold $1 250 of merchandise (that had cost $900) to customers who used their Goldman cards. 14 Received Carpenter's check in full payment for the purchase of August 4. Check Aug. 14. Dr Cash, $3,700 15 Sold $3,250 of merchandise (that had cost $1,758) to customers who used their Goldman cards. 22 Wrote off the account of Craw Co. against the Allowance for Doubtful Accounts. The $498 balance in Craw Co.'s account Page 350 stemmed from a credit sale in November of last year. Required Prepare journal entries to record the preceding transactions and events. (The company uses the perpetual inventory system. Round amounts to the nearest dollar.) Problem 7-2R Estimatino and renortine had dehts 2AD eved May not be copied, scanned or duplcated, nwhiole or in part, except for use as servce or otrermse on a password-protected website for classroom use

Explanation / Answer

Journal Entries :-

Date Particulars Debit($) Credit($) Aug. 4 Account Receivable(MKC) A/c Dr. 3700 To Sales a/c 3700 Aug. 4 Cost of Goods Sold A/c Dr. 2000 To Merchandise Inventory A/c 2000 Aug. 10 Accounts Receivable A/c Dr. 5044 Credit card Expense @ 3% A/c Dr. 156 To Sales A/c 5200 Aug. 10 Cost of Goods Sold A/c Dr. 2800 To Merchanduse Inventory A/c 2800 Aug. 10 Bank A/c Dr. 5044 To Accounts Receivable A/c 5044 Aug. 11 Accounts Receivable A/c Dr. 1225 Credit Card Exp. @ 2% A/c Dr. 25 To Sales A/c 1250 Aug. 11 Cost of Goods Sold A/c Dr. 900 To Merchandise Inventory A/c 900 Aug. 14 Cash A/c Dr. 3626 Sales Discount A/c Dr. 74 To Accounts Receivable A/c 3700 Aug. 15 Accounts Receivable A/c Dr. 3185 Credit Card Exp. @ 2% A/c Dr. 65 To Sales A/c 3250 Aug. 15 Cost of Goods Sold A/c Dr. 1758 To Merchandise Inventory A/c 1758 Aug. 22 Allowance for Doubtful Debts A/c Dr. 498 To Accounts Receivable A/c 498

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.