Textbook Problem

Sales-related transactions, including the use of credit cards

Journalize the entries for the following transactions:

1. A. Sold merchandise for cash, $25,000. The cost of the goods sold was $17,500.
2. B. Sold merchandise on account, $98,000. The cost of the goods sold was $58,800.
3. C. Sold merchandise to customers who used MasterCard and VISA, $475,000. The cost of the goods sold was $280,000.
4. D. Sold merchandise to customers who used American Express, $63,000. The cost of the goods sold was $39,000.
5. E. Received an invoice from National Clearing House Credit Co. for $13,450 representing a service fee paid for processing MasterCard, VISA, and American Express sales.