Journalize the entries for the following transactions: a. Sold merchandise for cash, $116,300. The cost of the merchandise sold was $72,000.

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