Levine Company uses the perpetual inventory system and allows customers to use two credit cards in charging purchases. With theSuntrust Bank Card, a 4% service charge for credit card sales is assessed. The second credit card that Levine accepts is theContinental Card. Continental assesses a 2.5% charge on sales for using its card.Apr. 8 Sold merchandise for $8,400 (that had cost $6,000) and accepted the customer's Suntrust Bank Card.12 Sold merchandise for $5,600 (that had cost $3,500) and accepted the customer's Continental Card.Prepare journal entries to record the above selected credit card transactions of Levine Company.View journal entry worksheetView transaction listNoDateGeneral JournalDebitCreditApr 08CashCredt card expenseSales2Apr 08Cost of goods soldMerchandise inventoryApr 12CashCredit card expenseSalesApr 12Cost of goods soldMerchandise inventory

Journal entry: Journal entry is a set of economic events that can be measured in monetary terms.…

Answered: Levine Company uses the perpetual…

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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Gadubhai
Novak Company buys merchandise on account from Bramble Corp.. The selling price of the goods is $1,350, and the cost of the goods is $940. Both companies use perpetual inventory systems.Journalize the transaction on the books of both companies.
Can you help me explain how does it work? what is $5000 stand for and $2400 stand for? A seller uses a perpetual inventory system and on April 4 it sells $5,000 in merchandise with a cost of $2,400 to a customer on credit terms of 3/10, n/30. Complete the two journal entries to record the sales transaction by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. The first journal entry is to record the revenue part of the transaction and the second journal entry is to record the cost part.
Levine Company uses the perpetual inventory system. April 8 Sold merchandise for $8,700 (that had cost $6,429) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. April 12 Sold merchandise for $8,000 (that had cost $5,184) and accepted the customer's Continental Card. Continental charges a 2.5% fee. Prepare journal entries to record the above credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount.)
perpetual inventory system of stellarMar. Stellar Stores purchases $9,100 of merchandise for resale from Sunland Wholesalers, terms 2/10, n/30, FOB shipping point.12 The correct company pays $160 for the shipping charges.Stellar returns $1,000 of the merchandise purchased on March 1 because it was the wrong colour. Sunland gives Stellar a$1,000 credit on its account.21Stellar Stores purchases an additional $13.000 of merchandise for resale from Sunland Wholesalers, terms 2/10, n/30,FOBdestination.22The correct cormpany pays $195 for freight charges.23Stellar returns $300 of the merchandise purchased on March 21 because it was damaged. Sunland gives Stellar a $300credit on its account.30Stellar paid Sunland the armount owing for the merchandise purchased on March 1.31Stellar paid Sunland the amount owing for the merchandise purchased on March 21.Additional information:Mar.Sunland's cost of the merchandise sold to Stellar was $3,900.3Sunland's cost of the merchandise returned by Stellar…
Lamplight Plus sells lamps to consumers. The company contracts with a supplier who provides them with lamp fixtures. There is an agreement that Lamplight Plus is not required to provide cash payment immediately and instead will provide payment within thirty days of the invoice date. You are to provide the journal entries for the following transactions assuming a perpetual inventory system. Cash Accounts Payable Purchases Accounts Receivable Merchandise Inventory Sales PLEASE NOTE: You must enter the account names exactly as written above and all whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). Lamplight purchases thirty light fixtures for $20 each on August 1, invoice date August 1, with no discount terms DR CR Lamplight returns ten light fixtures, receiving a credit amount for the full purchase price on August 3: DR CR Lamplight purchases an additional fifteen light fixtures for $15 each on August 19, invoice…
am. 103.
Record the following selected transactions: a. Sold $900 of merchandise on account, subject to 7% sales tax. The cost of the goods sold was $510. b. Paid $436 to the state sales tax department for taxes collected. Required: Journalize the entries. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Supplies 142 Prepaid Insurance 180 Land 190 Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 216 Salaries Payable 221 Sales Tax Payable 222 Customers Refunds Payable 231 Unearned Rent 241 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends REVENUE 410 Sales EXPENSES 510 Cost of Goods Sold 521 Delivery Expense 522…
On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms 2/10, n30. The cost of the items sold is $4,500. Klein uses PERPETUAL inventory system and the GROSS METHOD of accounting for sales. Babson pays the invoice on March 17th and takes the appropriate discount. What is the journal entry Klein makes on March 17th?

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