BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

Solutions

Chapter
Section
BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Sales-related transactions, including the use of credit cards

Journalize the entries for the following transactions:

  1. a. Sold merchandise for cash, $116,300. The cost of the merchandise sold was $72,000.
  2. b. Sold merchandise on account, $755,000. The com of the merchandise sold was $400,000.
  3. c. Sold merchandise to customers who used MasterCard and VISA, $1,950,000. The cost of the merchandise sold was $1,250,000.
  4. d. Sold merchandise to customers who used American Express. $330,000. The cost of the merchandise .sold was $230,000.
  5. e. Paid $81,500 to National Clearing House Credit Co. for service fees for processing MasterCard, VISA, and American Express sales.

a.

To determine

Sales is an activity of selling the merchandise inventory of a business.

To Record: The sale transactions of the company.

Explanation

Explanation

  • Cash is an asset and it is increased by $116,300. Therefore, debit cash account with $116,300.
  • Sales revenue is revenue and it increases the value of equity by $116,300. Therefore, credit sales revenue with $116,300.

Record the journal entry for cost of goods sold.

Date Accounts and Explanation Debit ($) Credit ($)
  Cost of Merchandise Sold

b.

To determine

To Record: The sale transactions of the company.

c.

To determine

To Record: The sale transactions of the company.

d.

To determine

To Record: The sale transactions of the company.

e.

To determine

To Record: The payment of credit card expense.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Once you have a job, what steps can you take to be successful?

Foundations of Business (MindTap Course List)

REACHING A FINANCIAL GOAL Erika and Kitty, who are twins, just received 30,000 each for their 25th birthday. Th...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)