quick study 7-1

Prepare journal entries for the following credit card sales transactions (the company uses the prepare inventory system). Sold $20,000 of merchandise, that cost $15,000, on MasterCard credit cards. The net cash race from sales are immediately deposited in the seller's bank account. MasterCard charges a 5% fee. Sold $5,000 of merchandise, that cost $3,000, on an assortment of credit cards, Net cash receipts received 5 days later, and a 4% fee is charged