Question

Sales-Related Transactions, Including the Use of Credit Cards Journalize the entries for the following transactions: (If an amount box does not require an entry, leave it blank.) a. Sold merchandise for cash, $25,000. The cost of the goods sold was $17,500. (Record the sale first.)
b. Sold merchandise on account, $98,000. The cost of the goods sold was $58,800. (Record the sale first.)
c. Sold merchandise to customers who used MasterCard and VISA, $475,000. The cost of the goods sold was $280,000. (Record the sale first.)
d. Sold merchandise to customers who used American Express, $63,000. The cost of the goods sold was $39,000. (Record the sale first.)
e. Received and paid an invoice from National Clearing House Credit Co. for $13,450, representing a service fee paid for processing MasterCard, VISA, and American Express sales.

Answer 1

Answer:

Journal entries

Explanation:

a. Cash $25,000

            To Sales $25,000

(Being the sale is recorded)

Costs of Goods Sold $17,500

          To  Inventory $17,500

(Being the cost is recorded)

B.  Accounts Receivable $98,000

             To  Sales $98,000

(Being the sales is recorded)

Costs of Goods Sold $58,800

           To inventory $58,800

(Being the cost is recorded)

C.   Accounts Receivable $475,000

             To  Sales $475,000

(Being the sales is recorded)

Costs of Goods Sold $280,000

           To inventory $280,000

(Being the cost is recorded)

D.  Accounts Receivable $63,000

             To  Sales $63,000

(Being the sales is recorded)

Costs of Goods Sold $39,000

           To inventory $39,000

(Being the cost is recorded)

E.  Cash $524,550

    Credit card Expense $13,450

               To Accounts Receivable $538,000

(Being the cash is recorded)

 Sales $661,000

            To Income Summary $661,000

(Being the closing is recorded)

Income summary $408,750

         To Costs of Goods Sold $ 395,300

          To Credit Card Expense $ 13,450

(Being the credit card expense and the cost of goods sold closing is recorded)

Income Summary $252,250

   To  Retained Earnings $252,250                

(Being the transfer is recorded)