Ask Question
15 December, 02:29

Z-Mart uses the perpetual inventory system and allows customers to use the Z-Mart store credit card in charging purchases. Z-Mart assesses a per-month interest fee for any unpaid balance on its store credit card at each month-end. Apr. 30 Z-Mart sold merchandise for $1,000 (that had cost $650) and accepted the customer's Z-Mart store credit card. May 31 Z-Mart recorded $4 of interest earned from its store credit card as of this month-end. Prepare journal entries to record the above selected credit card transactions of Z-Mart.

+3
Answers (1)
  1. 15 December, 06:02
    0
    Following are the journal entries

    Explanation:

    Z-mart uses perpetual inventory system. To enter the selected credit card transactions, the journal entries are;

    No Date General Journal Debit Credit

    1 Apr 30 Accounts receivable 1000

    Sales 1000

    2 Apr 30 Cost of goods sold 650

    Merchandise inventory 650

    3 May 31 Accounts receivable 4

    Interest revenue 4
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Z-Mart uses the perpetual inventory system and allows customers to use the Z-Mart store credit card in charging purchases. Z-Mart assesses ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers