Sales-Related Transactions, Including the Use of Credit Cards Journalize the ent
ID: 2550538 • Letter: S
Question
Sales-Related Transactions, Including the Use of Credit Cards
Journalize the entries for the following transactions:
a. Sold merchandise for cash, $20,800. The cost of the goods sold was $12,480. (Record the sale first.)
b. Sold merchandise on account, $8,890. The cost of the goods sold was $5,330. (Record the sale first.)
c. Sold merchandise to customers who used MasterCard and VISA, $114,550. The cost of the goods sold was $68,730. (Record the sale first.)
d. Sold merchandise to customers who used American Express, $53,300. The cost of the goods sold was $31,980. (Record the sale first.)
e. Received and paid an invoice from National Clearing House Credit Co. for $6,450, representing a service fee paid for processing MasterCard, VISA, and American Express sales.
Explanation / Answer
(A)
Cash A/c Dr $ 20,800
To Sales A/c Cr $ 20,800
Cost of Merchandise Sold A/c Dr $ 12,480
To Merchandise Inventory A/c Cr $ 12,480
(B)
Accounts Receivable A/c Dr $ 8,890
To Sales A/c Cr $ 8,890
Cost of Merchandise Sold A/c Dr $ 5,530
To Merchandise Inventory A/c Cr $ 5,530
(C)
Cash A/c Dr $ 1,14,550
To Sales A/c Cr $ 1,14,550
Cost of Merchandise Sold A/c Dr $ 68,730
To Merchandise Inventory A/c Cr $ 68,730
(D)
Cash A/c Dr $ 53,300
To Sales A/c Cr $ 53,300
Cost of Merchandise Sold A/c Dr $ 31,980
To Merchandise Inventory A/c Cr $ 31,980
(E)
Credit Card Expense A/c Dr $ 6,450
To Cash A/c Cr $ 6,450
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