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 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 merchandise for $9,300 (that had cost $6,873) and accepted the customer's Suntrust Bank Card.
		12		Sold merchandise for $3,400 (that had cost $2,203) 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.)

• Sold merchandise for $9,300 and accepted the customers Suntrust Bank Card.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Apr 08	Cash	8,928
	Credit card expense
	Sales		9,300

• Record the cost of goods sold, $6,873.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Apr 08

• Sold merchandise for $3,400 and accepted the customers Continental Card.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Apr 12

• Record the cost of goods sold, $2,203.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Apr 12