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notsponge [240]
3 years ago
12

Prepare journal entries for the following credit card sales transactions.

Business
1 answer:
inessss [21]3 years ago
6 0

Answer and Explanation:

The journal entries are given below:

1. Cash A/c Dr $19,000

Credit card expense A/c Dr  $1,000            ($20,000 × 5%)

       To Sales A/c                             $20,000

(To record the received cash )

Cost of goods sold A/c Dr $15,000

        To Merchandise inventory A/c $15,000

(To record the inventory is sold at cost)

2. Accounts receivable A/c Dr $4,800

   Credit card expense A/c Dr  $200          ($5,000 × 4%)

        To Sales A/c                             $5,000

(To record the merchandise is sold on credit)

Cost of goods sold A/c Dr $3,000

        To Merchandise inventory A/c $3,000

(To record the inventory is sold at cost)

Cash A/c Dr $4,800

      To Accounts receivable $4,800

(to record the cash is received)

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