Credit Card Sales Valderi's Gallery sells quality art work, with prices for individual pieces ranging from $500 to $25,000. Sales are infrequent, typically only three to five pieces per week. The following transactions occurred during the first week of June 2012. Perpetual inventory is used. Jun.1 Sold a framed print to Kerwin Antiques on account, with 2/10,n/30 credit terms for $900 ($600 cost) Jun.2 Sold three framed etchings to Maria Alvado, totaling $2,500 ($1,600 cost) who used the United Merchants Card to charge the cost of the etchings. Valderi mailed the credit card sales slip to United Merchants the same day. United Merchants will send a check within seven days after deducting a 1 % fee. Jun.4 Sold an oil painting to Shaun Chandler, who paid with a personal check: $1,900 ($1,100 cost) Jun.5 Sold a watercolor to Julie and John Malbie, who used their Great American Bank Card to charge the purchase of the painting. Valderi deposited the credit card sales slip the same day and received immediate credit in the company's checking account. The bank charged a 2% fee. The painting was sold for: $2,100 ($1,400 cost) Jun.6 Received payment from Kerwin Antiques for its June 1 purchase. Jun.7 Received a check from United Merchants for the June 2 sale. Required Prepare journal entries to record the Valderi Gallery transactions. General Journal Date Description Debit Credit June 1 Answer Answer Answer Answer Answer Answer To record credit sales revenue. June 1 Answer Answer Answer Answer Answer Answer To record cost of goods sold. June 2 Answer Answer Answer Credit Card Fee Expense Answer Answer Answer Answer Answer To record credit card sales. June 2 Answer Answer Answer Answer Answer Answer To record cost of goods sold. June 4 Answer Answer Answer Answer Answer Answer To record cash sales. June 4 Answer Answer Answer Answer Answer Answer To record cost of goods sold. June 5 Answer Answer Answer Credit Card Fee Expense Answer Answer Answer Answer Answer To record credit card sales. June 5 Answer Answer Answer Answer Answer Answer To record cost of goods sold. June 6 Cash Answer Answer Answer Answer Answer Answer Answer Answer To record collection from Kerwin Antiques. June 7 Answer Answer Answer Answer Answer Answer To record collection from United Merchants. PreviousSave AnswersFinish attempt ...

Credit Card Sales Valderi's Gallery sells quality art work, with prices for individual pieces ranging from $500 to $25,000. Sales are infrequent, typically only three to five pieces per week. The following transactions occurred during the first week of June 2012. Perpetual inventory is used. Jun.1 Sold a framed print to Kerwin Antiques on account, with 2/10,n/30 credit terms for $900 ($600 cost) Jun.2 Sold three framed etchings to Maria Alvado, totaling $2,500 ($1,600 cost) who used the United Merchants Card to charge the cost of the etchings. Valderi mailed the credit card sales slip to United Merchants the same day. United Merchants will send a check within seven days after deducting a 1 % fee. Jun.4 Sold an oil painting to Shaun Chandler, who paid with a personal check: $1,900 ($1,100 cost) Jun.5 Sold a watercolor to Julie and John Malbie, who used their Great American Bank Card to charge the purchase of the painting. Valderi deposited the credit card sales slip the same day and received immediate credit in the company's checking account. The bank charged a 2% fee. The painting was sold for: $2,100 ($1,400 cost) Jun.6 Received payment from Kerwin Antiques for its June 1 purchase. Jun.7 Received a check from United Merchants for the June 2 sale. Required Prepare journal entries to record the Valderi Gallery transactions. General Journal Date Description Debit Credit June 1 Answer Answer Answer Answer Answer Answer To record credit sales revenue. June 1 Answer Answer Answer Answer Answer Answer To record cost of goods sold. June 2 Answer Answer Answer Credit Card Fee Expense Answer Answer Answer Answer Answer To record credit card sales. June 2 Answer Answer Answer Answer Answer Answer To record cost of goods sold. June 4 Answer Answer Answer Answer Answer Answer To record cash sales. June 4 Answer Answer Answer Answer Answer Answer To record cost of goods sold. June 5 Answer Answer Answer Credit Card Fee Expense Answer Answer Answer Answer Answer To record credit card sales. June 5 Answer Answer Answer Answer Answer Answer To record cost of goods sold. June 6 Cash Answer Answer Answer Answer Answer Answer Answer Answer To record collection from Kerwin Antiques. June 7 Answer Answer Answer Answer Answer Answer To record collection from United Merchants. PreviousSave AnswersFinish attempt ...

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Credit Card Sales Valderi's Gallery sells quality art work, with prices for individual pieces ranging from $500 to $25,000. Sales are infrequent, typically only three to five pieces per week. The following transactions occurred during the first week of June 2012. Perpetual inventory is used.

Jun.1	Sold a framed print to Kerwin Antiques on account, with 2/10,n/30 credit terms for	$900	($600	cost)
Jun.2	Sold three framed etchings to Maria Alvado, totaling	$2,500	($1,600	cost)
	who used the United Merchants Card to charge the cost of the etchings. Valderi
	mailed the credit card sales slip to United Merchants the same day. United Merchants
	will send a check within seven days after deducting a 1 % fee.
Jun.4	Sold an oil painting to Shaun Chandler, who paid with a personal check:	$1,900	($1,100	cost)
Jun.5	Sold a watercolor to Julie and John Malbie, who used their Great American Bank
	Card to charge the purchase of the painting. Valderi deposited the credit card
	sales slip the same day and received immediate credit in the company's checking account.
	The bank charged a 2% fee. The painting was sold for:	$2,100	($1,400	cost)
Jun.6	Received payment from Kerwin Antiques for its June 1 purchase.
Jun.7	Received a check from United Merchants for the June 2 sale.

Required
Prepare journal entries to record the Valderi Gallery transactions.

General Journal
Date	Description	Debit	Credit
June 1	Answer	Answer	Answer
	Answer	Answer	Answer
	To record credit sales revenue.
June 1	Answer	Answer	Answer
	Answer	Answer	Answer
	To record cost of goods sold.
June 2	Answer	Answer	Answer
	Credit Card Fee Expense	Answer	Answer
	Answer	Answer	Answer
	To record credit card sales.
June 2	Answer	Answer	Answer
	Answer	Answer	Answer
	To record cost of goods sold.
June 4	Answer	Answer	Answer
	Answer	Answer	Answer
	To record cash sales.
June 4	Answer	Answer	Answer
	Answer	Answer	Answer
	To record cost of goods sold.
June 5	Answer	Answer	Answer
	Credit Card Fee Expense	Answer	Answer
	Answer	Answer	Answer
	To record credit card sales.
June 5	Answer	Answer	Answer
	Answer	Answer	Answer
	To record cost of goods sold.
June 6	Cash	Answer	Answer
	Answer	Answer	Answer
	Answer	Answer	Answer
	To record collection from Kerwin Antiques.
June 7	Answer	Answer	Answer
	Answer	Answer	Answer
	To record collection from United Merchants.

PreviousSave AnswersFinish attempt ...

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Journal entries are recorded in the books of accounts so that a proper report of transactions taking place in the business, can be maintained.

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