Answer:
See the journal entries below.
Explanation:
We first calculate the following:
Suntrust Credit Card expenses = $4,500 * 4% = $180
Continental Credit Card expenses = $4,600 * 2.5% = $115
The journal entries will therefore look as follows:
Levine Company
Journal Entries
<u>Date General Journal Debit ($) Credit ($) </u>
Apr. 8 Cash (Suntrust Credit Card) 4,320
Credit Card Expense 180
Sales Revenue 4,500
<u><em> (To record sale of goods using Suntrust Credit Card at 4% fee.) </em></u>
Cost of Goods Sold 3,326
Merchandise Inventory 3,326
<u><em> (To record the cost of goods sold.) </em></u>
Apr. 12 Cash (Continental Credit Card) 4,485
Credit Card Expense 115
Sales Revenue 4,600
<u><em> (To record sale of goods using Continental credit card at 2.5% fee.) </em></u>
Cost of Goods Sold 2,981
Merchandise Inventory 2,981
<u><em> (To record the cost of goods sold.) </em></u>