Question

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

Answer 1

Answer:

The solution of the exercise is attached in the microsof excel document.

Explanation:

All the records were made according to the information provided by the exercise. Considering the amounts and the dates. The unique complex calculation are some interest charges.

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