Mercks uses the perpetual inventory system, and accepts the Discovery credit card for credit card sales. Discovery charges Mercks a 3% fee, and all credit card receipts deposited are credited to the company account on the day of deposit. Prepare journal entries to record the following transaction.March 11Sold merchandise for $4,500 (that had cost $2,100) and accepted the customer's Discovery card.
What will be an ideal response?
| March 11 | Cash | 4,365 | ? |
| ? | Credit Card Expense | 135 | ? |
| ? | Sales | ? | 4,500 |
| ? | Cost of Goods Sold | 2,100 | ? |
| ? | Merchandise Inventory | ? | 2,100 |
| ? | ? | ? | ? |
You might also like to view...
A company is not required to follow a specific format in making the disclosures for its segments but the FASB encourages the most useful format for its specific circumstances
Indicate whether the statement is true or false
The second step in calculating dollar-value LIFO is to
A) compute the change in the inventory level for the year at base-year cost B) roll back the ending inventory cost to base-year costs C) value the total ending inventory at current-year costs D) roll forward the increase to current-year cost by applying the current-year conversion index
The purchase of a shopping product typically involves habitual consumer decision making
Indicate whether the statement is true or false
Outline the business reasons to limiting monitoring.
What will be an ideal response?