Levine Company uses the perpetual Inventory system. April 8 Sold merchandise for $8,500 (that had cost $6,282) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4 fee. April 12 Sold merchandise for $8,000 (that had cont $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.)
Levine Company uses the perpetual Inventory system. April 8 Sold merchandise for $8,500 (that had cost $6,282) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4 fee. April 12 Sold merchandise for $8,000 (that had cont $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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![**Exercise 7-1 (Algo): Accounting for Credit Card Sales**
Levine Company uses the perpetual inventory system.
- **April 8**: Sold merchandise for $8,500 (cost: $6,282) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee.
- **April 12**: Sold merchandise for $8,000 (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.)*
---
**Journal Entry Worksheet**
- **Transaction**: Sold merchandise for $8,500 and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee.
**Note**: Enter debits before credits.
- **Journal Entry**:
- **Date**: April 08
- **General Journal**: [Fields for Debit and Credit entries, not filled in the screenshot]
**Buttons**:
- Record entry
- Clear entry
- View general journal
---
*This worksheet allows students to practice recording journal entries based on provided transactions, considering fees and cost of goods sold.*](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3881c1a6-f287-42d9-8e45-c704abc4145f%2F1432e4bf-3a8d-41ec-b104-ac24cb978b31%2F49bvzcf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Exercise 7-1 (Algo): Accounting for Credit Card Sales**
Levine Company uses the perpetual inventory system.
- **April 8**: Sold merchandise for $8,500 (cost: $6,282) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee.
- **April 12**: Sold merchandise for $8,000 (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.)*
---
**Journal Entry Worksheet**
- **Transaction**: Sold merchandise for $8,500 and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee.
**Note**: Enter debits before credits.
- **Journal Entry**:
- **Date**: April 08
- **General Journal**: [Fields for Debit and Credit entries, not filled in the screenshot]
**Buttons**:
- Record entry
- Clear entry
- View general journal
---
*This worksheet allows students to practice recording journal entries based on provided transactions, considering fees and cost of goods sold.*
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