Question

Record the following transactions of Lisa’s Fashion Boutique in a general journal. Lisa's Fashion Boutique operates in a state with 8% sales tax. (Round your intermediate calculations and final answers to 2 decimal places):

DATE TRANSACTIONS

2019 Feb. 2 Sold merchandise for cash totaling $3,800 to customers using bank credit cards. Record the 2 percent discount on credit card sales at time of sale.

15 Sold merchandise totaling $2,100 to customers using American Express.

20 Received amount due from American Express, less their 3 percent discount, for sales made by customers using American Express on February 15.

Answer 1

2nd Feb, 2019

Cash / Bank A/c ............ Dr $ 3,724

Discount Allowed A/c..... Dr $ 76

To Sales A/c ....... Cr $ 3,800

( Being merchandise sold for cash totaling $3,800 to customers using bank credit cards. Allowed 2 percent discount on credit card sales at time of sale )

15th Feb, 2019

Sundry Creditors ............ Dr $ 2,100

To Sales A/c ........ Cr $ 2,100

( Being merchandise sold totaling $2,100 to customers on credit)

20th Feb, 2019

Cash / Bank A/c ............ Dr $ 2,037

Discount Allowed A/c..... Dr $ 63

To Sales A/c ....... Cr $ 2,100

( Being amount received due from creditors, less their 3 percent discount, against sales made on 15th feb 2019 )