Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Teal Mountain Stores has been in business for several years, uses a perpetual inventory system, and has its own credit card, called Teal Mountain Credit.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Teal Mountain Stores has been in business for several years, uses a perpetual inventory system, and has its own credit card, called Teal Mountain Credit. The business also accepts debit cards, and bank credit cards (Visa and Mastercard) as payment for sales. Teal Mountain is charged 4% for all bank credit card transactions and $0.50 per debit card transaction. Transactions for the business are shown below: May 1 Sales totalled $6,340. Of this amount, $2.100 of the sales were charged on the Teal Mountain Credit card and the remainder were cash sales. 15 Sales totalled $1,425. Of this amount, $900 of the sales were charged on the Teal Mountain Credit card and the remainder was paid for using Visa credit cards. 20 Received payments totalling $3,000 from Teal Mountain Credit card customers. 22 Sold goods totalling $1,410 to customers who used the Teal Mountain Credit card for payment. 30 Sales totalied $3,700. Of this amount, $1,000 of the sales were charged on the Teal Mountain Credit card, and $2.700 was paid for using Mastercard. 2U Kecerved payments totaning $3,000 trom real Mountain credit card customers. 22 Sold goods totalling $1,410 to customers who used the Teal Mountain Credit card for payment. 30 Sales totalled $3,700. Of this amount, $1,000 of the sales were charged on the Teal Mountain Credit card, and $2,700 was paid for using Mastercard. 31 Sales totalled \$3.700. All 80 transactions were debit card transactions. June 1 Added interest charges of $645 to outstanding Teal Mountain credit card balances. Prepare the journal entries to record the above transactions. Ignore any inventory or cost of goods sold entries for the purposes of this question. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem. Do not use accounts receivable use Credit Card Receivables.) Date Account Titles Debit Credit Credit Card Receivables \begin{tabular}{|} 4240 \\ \hline \end{tabular} Sales May 15 Credit Card Receivables 900 Cash \begin{tabular}{|r|} \hline 546 \\ \hline \end{tabular} Credit Sales Credit Card Receivables \begin{tabular}{|c||} \hline 108 \\ \hline \end{tabular} Credit card Reccivables \begin{tabular}{|c|} \hline 40 \\ \hline 4 \end{tabular} fune 1 credit Card 645 Sales 3700 Credit Card Recelvables Sales 3700 Credit card Recelvables 40

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

5th Edition

1264467206, 978-1264467204

More Books

Students also viewed these Accounting questions

Question

discuss different sources of numerical data;

Answered: 1 week ago

Question

design and evaluate an effective survey instrument;

Answered: 1 week ago

Question

administer a survey to an appropriate sample of respondents;

Answered: 1 week ago