Financial and Managerial Accounting (Looseleaf) (Custom Package)
6th Edition
ISBN: 9781259754883
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 7, Problem 2E
Exercise 7−2
Accounting for credit card sales
C1
Levine Company uses the perpetual inventory system and allows customers to use two credit cards in charging purchases. With the Suntrust Bank Card, Levine receives an immediate credit to its account when it deposits sales receipts. Suntrust assesses a 4% service charge for credit card sales. The second credit card that Levin accepts is the Continental Card. Levine sends its accumulated receipts to Continental on a weekly basis and is paid by Continental about a week later. Continental assesses a 2.5 % charge on sales for using its card. Prepare
| Apr. 8 | Sold merchandise for $8,400 (that had cost $6,000) and accepted the customers’ Suntrust Bank Card. The Suntrust receipts are immediately deposited in Levine’s bank account. |
| 12 | Sold merchandise for $5,600 (that had cost $3,500) and accepted the customers’ Continental Card. Transferred $5,600 of credit card receipts are Continental, requesting payment. |
| 20 | Received Continental’s check for the April 12 billing, less the service charge. |
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Omani Marble Company LLC sells (on credit) OMR 15000 Marble to a retailer with credit terms of 3/10, n/30. If OMR 9,000 of the account receivable is collected from the customer within the ten-days discount period, identify the journal entry from the following.
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Dr Cash OMR 15000 and Cr Accounts receivables OMR 15000
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Problem 7.6A (Algo) Recording sales made for cash, on open account, and with credit cards. LO 7-1, 7-2.
7-4
Royal Gift Shop sells cards, supplies, and various holiday greeting cards. Sales to retail customers are subject to an 8 percent sales tax
The firm sells its merchandise for cash; to customers using bank credit cards, such as MasterCard and Visa; and to customers using
American Express. The bank credit cards charge a 2 percent fee. American Express charges a 3 percent fee. Royal Gift Shop also
grants trade discounts to certain wholesale customers who place large orders. These orders are not subject to sales tax. During
February 20X1, Royal Gift Shop engaged in the following transactions:
DATE
TRANSACTIONS
20X1
Feb. 1 Sold crystal goods to Lovely Kitchens, a wholesale customer. The list price is $3,800, with a 25 percent trade
discount. This sale is not subject to sales tax. Issued Invoice 5950 with terms of n/15.
15 Recorded cash sales for the period from February 1 to February…
Credit Card Sales
Jamie’s Fabrics accepts cash, personal checks, and two credit cards when customers buy merchandise. With the Great American Bank Card, Jamie’s Fabrics receives an immediate deposit in its checking account when credit card sales slips are deposited at the bank. The bank charges a three percent fee. With the United Merchants Card, Jamie’s Fabrics mails the credit card sales slips to United Merchants’ regional processing center each day. United Merchants accumulates these slips for two days and then mails a check to Jamie’s Fabrics, after deducting a three percent fee. Prepare journal entries to record the following:
Round to the nearest dollar.
a.
Sales for March 15 were as follows:
Cash and checks
$950
Great American Bank Card (Deposited at the end of the day)
1,200
United Merchants Card (Mailed at the end of the day)
700
$2,850
b.
Received a check for $1,900 from United Merchants on March 20.
a.
General Journal
Date
Description…
Chapter 7 Solutions
Financial and Managerial Accounting (Looseleaf) (Custom Package)
Ch. 7 - Prob. 1MCQCh. 7 - Prob. 2MCQCh. 7 - Prob. 3MCQCh. 7 - Prob. 4MCQCh. 7 - Prob. 5MCQCh. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQ
Ch. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQCh. 7 - Prob. 1QSCh. 7 - Prob. 2QSCh. 7 - Prob. 3QSCh. 7 - QS 7-4 Distinguishing between allowance method and...Ch. 7 - QS 7-5 Allowance method for bad debts P2
Gomez...Ch. 7 - Percent of accounts receivable method P3 Warner...Ch. 7 - Prob. 7QSCh. 7 - Prob. 8QSCh. 7 - Prob. 9QSCh. 7 - Prob. 10QSCh. 7 - Prob. 11QSCh. 7 - Prob. 12QSCh. 7 - Prob. 13QSCh. 7 - Prob. 1ECh. 7 - Exercise 72 Accounting for credit card sales C1...Ch. 7 - Prob. 3ECh. 7 - Prob. 4ECh. 7 - Prob. 5ECh. 7 - Prob. 6ECh. 7 - Exercise 7-8 Percent of receivables method P3...Ch. 7 - Prob. 8ECh. 7 - Prob. 9ECh. 7 - Prob. 10ECh. 7 - Prob. 11ECh. 7 - Prob. 12ECh. 7 - Exercise 7-14 Dishonoring a note P4 Prepare...Ch. 7 - Prob. 14ECh. 7 - Prob. 15ECh. 7 - Prob. 16ECh. 7 - Prob. 1PSACh. 7 - Prob. 2PSACh. 7 - Prob. 3PSACh. 7 - Prob. 4PSACh. 7 - Prob. 5PSACh. 7 - Prob. 1PSBCh. 7 - Problem 7-2B
Estimating and reporting bad debts
P2...Ch. 7 - Prob. 3PSBCh. 7 - Prob. 4PSBCh. 7 - Prob. 5PSBCh. 7 - Prob. 7SPCh. 7 - Prob. 1GLPCh. 7 - Prob. 1BTNCh. 7 - Comparative figures for Apple andGoogle follow....Ch. 7 - Anton Blair is the manager of a medium-size...Ch. 7 - Prob. 4BTNCh. 7 - Prob. 5BTNCh. 7 - Prob. 6BTNCh. 7 - Prob. 7BTNCh. 7 - Prob. 8BTNCh. 7 - Prob. 9BTN
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