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1 February, 02:45

Levine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $3,600 (that had cost $2,660) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. 12 Sold merchandise for $9,400 (that had cost $6,091) and accepted the customer's Continental Card. Continental charges a 2.5% fee. Prepare journal entries to record the above credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount.)

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  1. 1 February, 03:45
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    Answer and Explanation:

    The journal entries are shown below:

    On April 8

    Cash $3,456

    Credit card expense $144 ($3,600 * 4%)

    To Sales $3,600

    (Being the sales is recorded)

    Cost of goods sold $2,660

    To Merchandise inventory $2,660

    (Being the cost of merchandiser is recorded)

    On April 12

    Accounts receivable - Continental $9,165

    Credit card expense $235 ($9,400 * 2.5%)

    To Sales $9,400

    (Being the sales is recorded)

    Cost of goods sold $6,091

    To Merchandise inventory $6,091

    (Being the cost of merchandiser is recorded)
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