1 Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system). 1. Sold $34,000 of merchandise, which cost $26,200, on Mastercard credit cards. Mastercard charges a 5% fee. 2. Sold $6,400 of merchandise, which cost $3,700, on an assortment of bank credit cards. These cards charge a 4% fee. View transaction list 1 Sold $34,000 of merchandise on Mastercard credit cards. Mastercard charges a 5% fee. ard 2 Record the cost of the sale, $26,200. 3 Sold $6,400 of merchandise on an assortment of bank credit cards. These cards charge a 4% fee. 4 Record the cost of the sale, $3,700. Credit
1 Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system). 1. Sold $34,000 of merchandise, which cost $26,200, on Mastercard credit cards. Mastercard charges a 5% fee. 2. Sold $6,400 of merchandise, which cost $3,700, on an assortment of bank credit cards. These cards charge a 4% fee. View transaction list 1 Sold $34,000 of merchandise on Mastercard credit cards. Mastercard charges a 5% fee. ard 2 Record the cost of the sale, $26,200. 3 Sold $6,400 of merchandise on an assortment of bank credit cards. These cards charge a 4% fee. 4 Record the cost of the sale, $3,700. Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:### Journal Entries for Credit Card Sales Transactions
#### Scenario:
The company uses a perpetual inventory system.
1. **Sold $34,000 of Merchandise on Mastercard Credit Cards**
- Cost of merchandise: $26,200
- Mastercard charges a 5% fee
2. **Sold $6,400 of Merchandise on an Assortment of Bank Credit Cards**
- Cost of merchandise: $3,700
- These cards charge a 4% fee
#### Journal Entries Details:
**View Transaction List:**
1. **Sales on Mastercard Credit Cards:**
**Entry 1:**
- **Account: Accounts Receivable (Mastercard)**
- **Debit:** $34,000
- **Account: Sales Revenue**
- **Credit:** $34,000
- **Fee Entry:**
- **Account: Credit Card Expense**
- **Debit:** $1,700 (5% of $34,000)
- **Account: Accounts Receivable (Mastercard)**
- **Credit:** $1,700
2. **Record Cost of the Sale:**
**Entry 2:**
- **Account: Cost of Goods Sold**
- **Debit:** $26,200
- **Account: Inventory**
- **Credit:** $26,200
3. **Sales on Assortment of Bank Credit Cards:**
**Entry 3:**
- **Account: Accounts Receivable (Bank Credit Cards)**
- **Debit:** $6,400
- **Account: Sales Revenue**
- **Credit:** $6,400
- **Fee Entry:**
- **Account: Credit Card Expense**
- **Debit:** $256 (4% of $6,400)
- **Account: Accounts Receivable (Bank Credit Cards)**
- **Credit:** $256
4. **Record Cost of the Sale:**
**Entry 4:**
- **Account: Cost of Goods Sold**
- **Debit:** $3,700
- **Account: Inventory**
- **Credit:** $3,700
#### Diagram/Graph Explanation:
There are no specific diagrams or graphs in the provided image. The detailed steps provided outline how to record the journal entries for the given transactions. The transactions list included in the image ensures each sales transaction and the associated cost recording is
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