Credit Card Sales Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system). 1. Sold $20,000 of merchandise, that cost $15,000, on MasterCard credit cards. The net cash receipts from sales are immediately deposited in the seller's bank account. MasterCard charges a 5% fee. 2. Sold $5,000 of merchandise, that cost $3,000, on an assortment of credit cards. Net cash receipts are received 5 days later, and a 4% fee is charged.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Credit Card Sales
Prepare journal entries for the following credit card sales transactions (the
company uses the perpetual inventory system).
1. Sold $20,000 of merchandise, that cost $15,000, on MasterCard credit cards.
The net cash receipts from sales are immediately deposited in the seller's
bank account. MasterCard charges a 5% fee.
2. Sold $5,000 of merchandise, that cost $3,000, on an assortment of credit
cards. Net cash receipts are received 5 days later, and a 4% fee is charged.
1
Transcribed Image Text:Credit Card Sales Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system). 1. Sold $20,000 of merchandise, that cost $15,000, on MasterCard credit cards. The net cash receipts from sales are immediately deposited in the seller's bank account. MasterCard charges a 5% fee. 2. Sold $5,000 of merchandise, that cost $3,000, on an assortment of credit cards. Net cash receipts are received 5 days later, and a 4% fee is charged. 1
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