ch 7 practice

Exercise 7-2 Accounting for credit card sales LO C1 Levine Company uses the perpetual inventory system and allows customers to use two credit cards ir charging purchases. With the Suntrust Bank Card. Levine receives an immediate credit to its account when it deposits sales receipts. Suntrust assesses a 4% service charge for credit card sales. The second credit card that Levine accepts is the Continental Card. Levine sends its accunulated receipts to Continental on a weekly basis and is paid by Continental about a week later. Continental assesses a 2.5% charge on sales for using its card 8 Apr. 8 Sold merchandise for $7.300 (that had cost $5.395) and accepted the customer's Suntrust Bank Card. The Suntrust receipts are immediately deposited in Levine's bank account Transferred $8,400 of credit card receipts to Continental, requesting payment 12 Sold merchandise for $8,400 (that had cost $5.443) and accepted the customer's Continental Card 20 Received Continental's check for the April 12 billing, less the service charge Prepare journal entries to record the above selected credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount View transaction list Journal entry worksheet 2 5 Sold merchandise for $7,300 (that had cost $5,395) and accepted the customer's Suntrust Bank Card. The Suntrust receipts are immediately deposited in Levine's bank account. Note: Enter debits before credits Date General Journa Debit Credit Apr 08