Problem 7.6A (Algo) Recording sales made for cash, on open account, and with credit cards. LO 7-1, 7-2 The Aristocrat Gift Shop sells cards, supplies, and various holiday greeting cards. Sales to retall customers are subject to an 8 percent sales tax. The firm sells its merchandise for cash; to customers using bank credit cards, such as MasterCard and Visa; and to customers using American Express. The bank credit cards charge a 2 percent fee. American Express charges a 3 percent fee. The Aristocrat Gift Shop also grants trade discounts to certain wholesale customers who place large orders. These orders are not subject to sales tax. During February 20X1, The Aristocrat Gift Shop engaged in the following transactions: DATE TRANSACTIONS February 1, 20x1 Sold crystal goods to Beautiful Kitchens, a wholesale customer. The list price is $4,200, with a 20 percent trade discount. This sale is not subject to sales tax. Issued Invoice 5950 with terms of "/15. February 15, 20x1 Recorded cash sales for the period from February 1 to February 15 of $8,700 plus sales tax of $696. February 15, 20x1 Recorded sales for the period from February 1 to February 15 to customers using bank credit cards of $12,200 plus sales tax of $976. (Record the 2 percent credit card expense at this time.) February 16, 20x1 February 16, 20x1 February 17, 20x1 Received a check from Beautiful Kitchens in payment of Invoice 5950 dated February 1. sold merchandise to customers using American Express for $8,200 plus sales tax of $656. Sold a set of marble statues to Lovely Bedrooms, a wholesale customer. The list price is $8,200, with a 25 percent trade discount. This sale is not subject to sales tax. Issued Invoice 5951 with terms of "/15 February 20, 20x1 Received payment from American Express for the amount billed on February 16, less a 3 percent credit card expense. February 27, 20x1 Received a check from Lovely Bedrooms in payment of Invoice 5951 dated February 17. February 28, 20x1 Recorded cash sales for the period from February 16 to February 28 of $7,350 plus sales tax of $588. February 28, 20x1 Recorded sales for the period from February 16 to February 28 to customers using bank credit cards of $20,000 plus sales tax of $1,600. (Record the 2 percent credit card expense at this time.) February 28, 20x1 sold merchandise to customers using American Express for $9,400 plus sales tax of $752. Required: 2. Record the transactions in a general journal. 3. Post the entries from the general journal to the appropriate accounts in the general ledger. GENERAL LEDGER ACCOUNTS 101 Cash, $22,430 Debit 121 Accounts Receivable: 222 Sales Tax Payable. Analyze: 401 Sales 521 Credit Card Expense What was the total credit card expense Incurred in February?