Levine Company uses the perpetual inventory system and allowscustomers to use two credit cards...

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Accounting

Levine Company uses the perpetual inventory system and allowscustomers to use two credit cards in charging purchases. With theSuntrust Bank Card, a 4% service charge for credit card sales isassessed. The second credit card that Levine accepts is theContinental Card. Continental assesses a 2.5% charge on sales forusing its card.
Apr. 8 Sold merchandise for $8,400 (that had cost $6,000) and acceptedthe customer’s Suntrust Bank Card.
12 Sold merchandise for $5,600 (that had cost $3,500) and acceptedthe customer’s Continental Card.

Prepare journal entries to record the above selected credit cardtransactions of Levine Company

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3.7 Ratings (332 Votes)

Journal entry :
Date	Accounts titles and Explanation	Debit ($)	Credit ($)
Apr-08	Cash (8,400*96%)	8,064
	Credit card expense	336
	Sales revenue		8,400
	(To record sales)

	cost of goods sold	6,000
	Inventory		6,000
	(To record cost of goods sold)

Apr-12	Cash (5600*97.5%)	5,460
	Credit card expense	140
	Sales revenue		5,600
	(To record sales)

	cost of goods sold	3,500
	Inventory		3,500
	(To record cost of goods sold)

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In: AccountingLevine Company uses the perpetual inventory system and allowscustomers to use two credit cards in...Levine Company uses the perpetual inventory system and allowscustomers to use two credit cards in charging purchases. With theSuntrust Bank Card, a 4% service charge for credit card sales isassessed. The second credit card that Levine accepts is theContinental Card. Continental assesses a 2.5% charge on sales forusing its card.Apr.8Sold merchandise for $8,400 (that had cost $6,000) and acceptedthe customer’s Suntrust Bank Card.12Sold merchandise for $5,600 (that had cost $3,500) and acceptedthe customer’s Continental Card.Prepare journal entries to record the above selected credit cardtransactions of Levine Company

Apr.		8		Sold merchandise for $8,400 (that had cost $6,000) and acceptedthe customer’s Suntrust Bank Card.
		12		Sold merchandise for $5,600 (that had cost $3,500) and acceptedthe customer’s Continental Card.