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Sales-related transactions, including the use of credit cards Journalize the entries for the following transactions: A. Sold merchandise for cash, $25,000. The cost of the goods sold was $17,500. B. Sold merchandise on account, $98,000. The cost of the goods sold was $58,800. C. Sold merchandise to customers who used MasterCard and VISA, $475,000. The cost of the goods sold was $280,000. D. Sold merchandise to customers who used American Express, $63,000. The cost of the goods sold was $39,000. 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.
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Financial And Managerial Accounting
15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663
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Chapter
Section
BuyFindarrow_forward
Financial And Managerial Accounting
15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663
Chapter 5, Problem 9E
Textbook Problem
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Sales-related transactions, including the use of credit cards
Journalize the entries for the following transactions:
- A. Sold merchandise for cash, $25,000. The cost of the goods sold was $17,500.
- B. Sold merchandise on account, $98,000. The cost of the goods sold was $58,800.
- C. Sold merchandise to customers who used MasterCard and VISA, $475,000. The cost of the goods sold was $280,000.
- D. Sold merchandise to customers who used American Express, $63,000. The cost of the goods sold was $39,000.
- E. Received an invoice from National Clearing House Credit Co. for $13,450 representing a service fee paid for processing MasterCard, VISA, and American Express sales.
A.
To determine
Record the sale transactions of the company.
Explanation of Solution
Sales is an activity of selling the merchandise inventory of a business.
Record the journal entry for the sale of inventory for cash.
| Date | Accounts and Explanation | Debit ($) | Credit ($) |
| Cash | 25,000 | ||
| To Sales Revenue | 25,000 | ||
| (To record the sale of inventory for cash) |
Table (1)
- • Cash is an asset and it is increased by $25,000. Therefore, debit cash account with $25,000.
- • Sales revenue is revenue and it increases the value of equity by $25,000. Therefore, credit sales revenue with $25,000...
B.
To determine
Record the sale transactions of the company.
C.
To determine
Record the sale transactions of the company.
D.
To determine
Record the sale transactions of the company.
E.
To determine
Record the payment of credit card expense.
Chapter 5 Solutions
Financial And Managerial Accounting
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