Journalize the entries for the following transactions:
a. Sold merchandise for cash, $116,300. The cost of the merchandise sold was $72,000.
b. Sold merchandise on account, $755,000. The cost of the merchandise sold was $400,000.
c. Sold merchandise to customers who used MasterCard and VISA, $1,950,000. The cost of the merchandise sold was $1,250,000.
d. Sold merchandise to customers who used American Express, $330,000. The cost of the merchandise sold was $230,000.
e. Paid $81,500 to National Clearing House Credit Co. for service fees for processing MasterCard, VISA, and American Express sales.
Answer:
a. Cash116,300
Sales116,300
Cost of Merchandise Sold72,000
Merchandise Inventory72,000
b. Accounts Receivable755,000
Sales755,000
Cost of Merchandise Sold400,000
Merchandise Inventory400,000
c. Cash1,950,000
Sales1,950,000
Cost of Merchandise Sold1,250,000
Merchandise Inventory1,250,000
d. Cash330,000
Sales330,000
Cost of Merchandise Sold230,000
Merchandise Inventory230,000
e. Credit Card Expense81,500
Cash81,500