Question 3

Instructions Journalize the entries for the following transactions. Refer to the Chart of Accounts for exact wording of account titles. (Note: the company uses a clearinghouse to take care of all bank as well as non-bank credit cards used by its customers.) 1 10 Sold merchandise for cash, $30,500. The cost of the merchandise sold was $16,165. Sold merchandise on account. $254.300. The cost of the merchandise sold was $134,779. 12 17 Sold merchandise to customers who used MasterCard and VISA, S162,900. The cost of the merchandise sold was $86,337 Sold merchandise to customers who used American Express, $72,000. The cost of the merchandise sold was $38,160. Paid $7,010, to National Clearing House Credit Co. for service fees for processing MasterCard, VISA, and American Express sales. 31 General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Rent Revenue 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory EXPENSES 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment 510 Cost of Merchandise Sold 521 Delivery Expense 522 Advertising Expense 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 526 Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 539 Miscellaneous Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 216 Salaries Payable 218 Sales Tax Payable 219 Customers Refunds Payable 220 Unearned Rent 221 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary Journal Journalize the entries for the March transactions. Refer to the Chart of Accounts for exact wording of account titles. PAGE 10 JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT