Sales-Related Transactions, Including the Use of Credit Cards

Journalize the entries for the following transactions:

a. Sold merchandise for cash, $24,480. The cost of the merchandise sold was $14,690. (Record the sale first.)

	Cash
	Sales
	Cost of Merchandise Sold
	Merchandise 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.

b. Sold merchandise on account, $14,090. The cost of the merchandise sold was $8,450. (Record the sale first.)

	Accounts Receivable
	Sales
	Cost of Merchandise Sold
	Merchandise 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.

c. Sold merchandise to customers who used MasterCard and VISA, $119,360. The cost of the merchandise sold was $71,620. (Record the sale first.)

	Cash
	Sales
	Cost of Merchandise Sold
	Merchandise 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.

d. Sold merchandise to customers who used American Express, $37,840. The cost of the merchandise sold was $22,700. (Record the sale first.)

	Cash
	Sales
	Cost of Merchandise Sold
	Merchandise 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.

e. Paid $7,590 to National Clearing House Credit Co. for service fees for processing MasterCard, VISA, and American Express sales.

	Credit Card Expense
	Cash