Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2.5 points Levine Company uses the perpetual inventory system and allows customers to use two credit cards in charging purchases. With the Suntrust Bank Card,

image text in transcribed
2.5 points 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 25% charge on sales for using its card. Apr. 8 Sold merchandise for $7,500 (that had cost $5,543) and accepted the customer's Suntrust Bank Card. 12 Sold merchandise for $4,600 (that had cost $2,981) and accepted the customer's Continental Card. Prepare journal entries to record the above selected credit card transactions of Levine Company (Round your answers to the nearest whole dollar amount.) Answer is complete but not entirely correct. No Date General Journal Credit 1 Apr 08 Cash Debit 8,400 X 336 Credit card expense OOO Sales 8,400 & 2 Apr 08 Cost of goods sold > 6.000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Padhukas Students Handbook On Auditing And Assurance Including Multiple Choice Questions For CA Inter

Authors: CA G. Sekar, CA B Saravana Prasath

18th Edition

9390303087, 978-9390303083

More Books

Students also viewed these Accounting questions