(a) Sold merchandise on account, for $10,000. The cost of the merchandise sold was $4,500.

(b) Sold merchandise to customers who used MasterCard and VISA, $8,500. The cost of the merchandise sold was $4,100.

(c) Sold merchandise to customers who used American Express, $3,500. The cost of the merchandise sold was $1,600.

(d) Paid an invoice from First National Bank for $255, representing a service fee for processing MasterCard and VISA sales.

(e) Received $3,325 from American Express Company after a $175 collection fee had been deducted.

Thanks...

Quote:

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Originally Posted by MO2DY

(a) Sold merchandise on account, for $10,000. The cost of the merchandise sold was $4,500.

(b) Sold merchandise to customers who used MasterCard and VISA, $8,500. The cost of the merchandise sold was $4,100.

(c) Sold merchandise to customers who used American Express, $3,500. The cost of the merchandise sold was $1,600.

(d) Paid an invoice from First National Bank for $255, representing a service fee for processing MasterCard and VISA sales.

(e) Received $3,325 from American Express Company after a $175 collection fee had been deducted.

thanks......

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a)
Dr.Accounts receivable... 10,000
Cr. Sales... 10,000
----
Dr. Cost of goods sold... 4,500
Cr. Merchandise inventory... 4,500
b)
Dr. Accounts receivable- Master card & visa... 8,500
Cr. Sales... 8,500
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Dr. Cost of goods sold... 4,100
Cr. Merchandise inventory... 4,100
c)
Dr. Accounts receivable- American Express... 3,500
Cr. Sales... 3,500
--
Dr. Cost of goods sold... 1,600
Cr. Merchandise inventory... 1,600
d)
Dr. Credit card expense... 255
Cr. Cash... 255
e)
Dr. Cash... 3,325
Dr. Credit card expense... 175
Cr. Accounts receivable- american express... 3,500
Hope this help you

Gadget Palace is a retailer selling unique hardware. Gadget Palace uses perpetual inventory. Use a General journal to journalize the following four transactions during the month of August:

a) On July 5th, Gadget Palace purchases inventory for sale from Turbo Tools for $11,400 with terms 2/10, n/30
b) On July 6th, Gadget Palace pays Fast Truck Transport $75 for freight-in on the July 5h order.
c) Gadget Palace gets a credit memo from Turbo Tools for $215.00 for damaged merchandise on July 8th.
d) On July 15th, Gadget Place pays Turbo Tools the balance due