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The Aristocrat Gift Shop sells cards, supplies, and various holiday greeting cards. Sales to retail customers are subject to an 8 percent sales tax. The firm sells its merchandise for cash; to customers using bank credit cards, such as MasterCard and Visa; and to customers using American Express. The bank credit cards charge a 1 percent fee. American Express charges a 2 percent fee. The Aristocrat Gift Shop also grants trade discounts to certain wholesale customers who place large orders. These orders are not subject to sales tax. During February 20X1, The Aristocrat Gift Shop engaged in the following transactions: DATE February 1, 20x 1 February 15,201 February 15,201 February 16, 20x1 February 16 , 20x1 February 17, 20X1 February 20, 20x1 February 27, 20x1 February 28, 20X1 February 28, 20x1 February 28,20x TRANSACTIONS Sold crystal goods to Beautiful Kitchens, a wholesale customer. The list price is $3,300, with a 20 percent trade discount. This sale is not subject to sales tax. Issued Invoice 5950 with terms of n/15. Recorded cash sales for the period from February 1 to February 15 of $7,800 plus sales tax of $624. Recorded sales for the period from February 1 to February 15 to customers using bank credit cards of $11,300 plus sales tax of $904. (Record the 1 percent credit card expense at this time.) Received a check from Beautiful Kitchens in payment of Invoice 5950 dated February 1. Sold merchandise to customers using American Express for $7,300 plus sales tax of $584. Sold a set of marble statues to Lovely Bedrooms, a wholesale customer. The list price is $7,300, with a 25 percent trade discount. This sale is not subject to sales tax. Issued Invoice 5951 with terms of n/15. Received payment from American Express for the amount billed on February 16, less a 2 percent credit card expense. Received a check from Lovely Bedrooms in payment of Invoice 5951 dated February 17. Recorded cash sales for the period from February 16 to February 28 of $6,900 plus sales tax of $552. Recorded sales for the period from February 16 to February 28 to customers using bank credit cards of $20,000 plus sales tax of $1,600. (Record the 1 percent credit card expense at this time.) Sold merchandise to customers using American Express for $8,500 plus sales tax of $680. Required: 2. Record the transactions in a general journal. 3. Post the entries from the general journal to the appropriate accounts in the general ledger. GENERAL LEDGER ACCOUNTS 101 Cash, $21,530 Debit 401 Sales 121 Accounts Receivable 521 Credit Card Expense 222 Sales Tax Payable Analyze: What was the total credit card expense incurred in February? \begin{tabular}{|c|c|c|c|c|c|} \hline No & Date & Account Title & & Debit & Credit \\ \hline \multirow[t]{2}{*}{1} & February 1,201 & Accounts receivable or Beautiful Kitchens & & 2,640.00 & \\ \hline & & Sales & 2 & & 2,640.00 \\ \hline \multirow[t]{3}{*}{2} & February 15,201 & Cash & & 8,424.00 & \\ \hline & & Sales & 2 & & 7,800.00 \\ \hline & & Sales tax payable & 2 & & 624.00 \\ \hline \multirow[t]{4}{*}{3} & February 15,201 & Credit card expense & & 122.04 & \\ \hline & & Cash & 2 & 12,081.96 & \\ \hline & & Sales & 2 & & 11,300.00 \\ \hline & & Sales tax payable & 2 & & 904.00 \\ \hline \multirow[t]{2}{*}{4} & February 16,201 & Cash & & 2,640.00 & \\ \hline & & Accounts receivable or Beautiful Kitchens & 2 & & 2,640.00 \\ \hline \multirow[t]{3}{*}{5} & February 16,201 & Accounts receivable or American Express & & 7,884.00 & \\ \hline & & Sales & 2 & & 7,300.00 \\ \hline & & Sales tax payable & 2 & & 584.00 \\ \hline \multirow[t]{2}{*}{6} & February 17,201 & Accounts receivable or Lovely Bedrooms & & 5,475.00 & \\ \hline & & Sales & 2 & & 5,475.00 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline 7 & February 20,201 & Cash & & 7,726.32 & \\ \hline & & Credit card expense & 2 & 157.68 & \\ \hline & & Accounts receivable or American Express & 2 & & 7,884.00 \\ \hline \multirow[t]{2}{*}{8} & February 27,201 & Cash & & 5,475.00 & \\ \hline & & Accounts receivable or Lovely Bedrooms & 2 & & 5,475.00 \\ \hline \multirow[t]{3}{*}{9} & February 28,201 & Cash & & 7,452.00 & \\ \hline & & Sales & 2 & & 6,900.000 \\ \hline & & Sales tax payable & 2 & & 552.00 \\ \hline \multirow[t]{4}{*}{10} & February 28,201 & Cash & & 21,384.00 & \\ \hline & & Credit card expense & 2 & 216.000 & \\ \hline & & Sales & 2 & & 20,000.00 \\ \hline & & Sales tax payable & 2 & & 1,600.00 \\ \hline \multirow[t]{3}{*}{11} & February 28,201 & Accounts receivable or American Express & & 9,180.00 & \\ \hline & & Sales & 2 & & 8,500.00 \\ \hline & & Sales tax payable & 2 & & 680.00 \\ \hline \end{tabular}

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