Sales-Related Transactions, Including the Use of Credit Cards

Journalize the entries for the following transactions:

a. Sold merchandise for cash, $21,620. The cost of the goods sold was $12,970. (Record the sale first.)

	Cash
	Sales
	Cost of Goods Sold
	Inventory

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(a-d) Record transactions from the seller's perspective. Keep in mind that two entries are required for each transaction: (1) for the sale and payment method (cash or on account) and (2) for the cost of the merchandise sold and inventory.

Learning Objective 2.

b. Sold merchandise on account, $9,880. The cost of the goods sold was $5,930. (Record the sale first.)

	Accounts Receivable
	Sales
	Cost of Goods Sold
	Inventory

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(a-d) Record transactions from the seller's perspective. Keep in mind that two entries are required for each transaction: (1) for the sale and payment method (cash or on account) and (2) for the cost of the merchandise sold and inventory.

Learning Objective 2.

c. Sold merchandise to customers who used MasterCard and VISA, $118,480. The cost of the goods sold was $71,090. (Record the sale first.)

	Cash
	Sales
	Cost of Goods Sold
	Inventory

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(a-d) Record transactions from the seller's perspective. Keep in mind that two entries are required for each transaction: (1) for the sale and payment method (cash or on account) and (2) for the cost of the merchandise sold and inventory.

Learning Objective 2.

d. Sold merchandise to customers who used American Express, $46,560. The cost of the goods sold was $27,940. (Record the sale first.)

	Cash
	Sales
	Cost of Goods Sold
	Inventory

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(a-d) Record transactions from the seller's perspective. Keep in mind that two entries are required for each transaction: (1) for the sale and payment method (cash or on account) and (2) for the cost of the merchandise sold and inventory. Remember that credit card transactions are recorded as cash sales.

Learning Objective 2.

e. Received and paid an invoice from National Clearing House Credit Co. for $6,700, representing a service fee paid for processing MasterCard, VISA, and American Express sales.

	Credit Card Expense
	Cash