Levine Company uses the perpetual inventory system and allows customers to use two credit cards in charging purchases. With the Suntrust Bank Card, a 4% service charge for credit card sales is assessed. The second credit card that Levine accepts is the Continental 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 worksheet View transaction list No Date General Journal Debit Credit Apr 08 Cash Credt card expense Sales 2 Apr 08 Cost of goods sold Merchandise inventory Apr 12 Cash Credit card expense Sales Apr 12 Cost of goods sold Merchandise inventory

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Levine Company uses the perpetual inventory system and allows customers to use two credit cards in charging purchases. With the
Suntrust Bank Card, a 4% service charge for credit card sales is assessed. The second credit card that Levine accepts is the
Continental 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 worksheet
View transaction list
No
Date
General Journal
Debit
Credit
Apr 08
Cash
Credt card expense
Sales
2
Apr 08
Cost of goods sold
Merchandise inventory
Apr 12
Cash
Credit card expense
Sales
Apr 12
Cost of goods sold
Merchandise inventory
Transcribed Image Text:Levine Company uses the perpetual inventory system and allows customers to use two credit cards in charging purchases. With the Suntrust Bank Card, a 4% service charge for credit card sales is assessed. The second credit card that Levine accepts is the Continental 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 worksheet View transaction list No Date General Journal Debit Credit Apr 08 Cash Credt card expense Sales 2 Apr 08 Cost of goods sold Merchandise inventory Apr 12 Cash Credit card expense Sales Apr 12 Cost of goods sold Merchandise inventory
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