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 nerchandise for S8, 400 (that had cest $6,000) and accepted the customer's Suntrust Bank Card. 12 Sold merchandise for $5,600 (that had cost $3,se0) and accepted the custoer's Continental Card. Prepare journal entries to record the above selected credit card transactions of Levine Company. View journal entry workaheet View transaction list No Date General Journal Debit Credit Apr 08 Cash Credi card expense Sales Apr 08 Cost of goods soid Merchandise inventory Apr 12 Cash Credit card expense Sales Apr 12 Cost of goods soid Merchandise invontory
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 nerchandise for S8, 400 (that had cest $6,000) and accepted the customer's Suntrust Bank Card. 12 Sold merchandise for $5,600 (that had cost $3,se0) and accepted the custoer's Continental Card. Prepare journal entries to record the above selected credit card transactions of Levine Company. View journal entry workaheet View transaction list No Date General Journal Debit Credit Apr 08 Cash Credi card expense Sales Apr 08 Cost of goods soid Merchandise inventory Apr 12 Cash Credit card expense Sales Apr 12 Cost of goods soid Merchandise invontory
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 nerchandise for S8, 400 (that had cest $6,000) and accepted the customer's Suntrust Bank Card.
12 Sold merchandise for $5,600 (that had cost $3,se0) and accepted the custoer's Continental Card.
Prepare journal entries to record the above selected credit card transactions of Levine Company.
View journal entry workaheet
View transaction list
No
Date
General Journal
Debit
Credit
Apr 08
Cash
Credi card expense
Sales
Apr 08
Cost of goods soid
Merchandise inventory
Apr 12
Cash
Credit card expense
Sales
Apr 12
Cost of goods soid
Merchandise invontory](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F86734572-baf4-47b0-8291-859af4f33483%2Fc453c14d-fd29-4096-bd9e-57b67c45875e%2Fmizwta_processed.png&w=3840&q=75)
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 nerchandise for S8, 400 (that had cest $6,000) and accepted the customer's Suntrust Bank Card.
12 Sold merchandise for $5,600 (that had cost $3,se0) and accepted the custoer's Continental Card.
Prepare journal entries to record the above selected credit card transactions of Levine Company.
View journal entry workaheet
View transaction list
No
Date
General Journal
Debit
Credit
Apr 08
Cash
Credi card expense
Sales
Apr 08
Cost of goods soid
Merchandise inventory
Apr 12
Cash
Credit card expense
Sales
Apr 12
Cost of goods soid
Merchandise invontory
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