Question

Journalize the entries for the following transactions. Refer to the Chart of Accounts for exact wording of account titles. (Note: The company uses a clearinghouse to take care of all bank as well as

non-bank credit cards used by its customers. )

Mar. 1 Sold merchandise for cash, $116,300. The cost of the merchandise sold was $72,000.

10 Sold merchandise on account, $755,000. The cost of the merchandise sold was $400,000.

12 Sold merchandise to customers who used MasterCard and VISA, $1,950,000. The cost of the merchandise sold was $1,250,000.

17 Sold merchandise to customers who used American Express, $330,000. The cost of the merchandise sold was $230,000.

31 Paid $81,500 to National Clearing House Credit Co. for service fees for processing MasterCard, VISA, and American Express sales.

Answer 1

1-Mar	Cash	116300
	Sales		116300
1-Mar	Cost of Merchandise Sold	72000
	Merchandise Inventory		72000
10-Mar	Accounts Receivable	755000
	Sales		755000
10-Mar	Cost of Merchandise Sold	400000
	Merchandise Inventory		400000
12-Mar	Cash	1950000
	Sales		1950000
	Cost of Merchandise Sold	1250000
	Merchandise Inventory		1250000
17-Mar	Cash	330000
	Sales		330000
	Cost of Merchandise Sold	230000
	Merchandise Inventory		230000
31-Mar	Credit Card Expense	81500
	Cash		81500