Financial Accounting: Information for Decisions
8th Edition
ISBN: 9781259533006
Author: John J Wild
Publisher: McGraw-Hill Education
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Question
Chapter 7, Problem 1PSB
Summary Introduction
Introduction:
To prepare: The general journal entries for the following transaction.
Expert Solution & Answer
Answer to Problem 1PSB
Journal entries are shown below.
Explanation of Solution
Journal entries of A co. for the month of August are shown below.
| Date | Particular | PR | Dr.$ | Cr.$ |
| Aug 4 | Account receivable −M.C. | 3700 | ||
| Sales | 3700 | |||
| (to record the sales on credit) | ||||
| Cost of goods sold | 2000 | |||
| Merchandise Inventory | 2000 | |||
| (To record cost of sales) | ||||
| Aug 10 | Cash | 5044 | ||
| credit card expense( ) | 156 | |||
| Sales | 5200 | |||
| (To record credit card sales less fee) | ||||
| Cost of goods sold | 2800 | |||
| Merchandise inventory | 2800 | |||
| (To record cost of sales) | ||||
| Aug 11 | Cash | 1,225 | ||
| Credit card expense ( ) | 25 | |||
| Sales | 1250 | |||
| (To record credit card sales less fee) | ||||
| Cost of goods sold | 900 | |||
| Merchandise | 900 | |||
| (To record cost of sales) | ||||
| Aug 14 | Cash | 3,700 | ||
| Account Receivable M.C | 3,700 | |||
| (To record cash received in payment of account) | ||||
| Aug 15 | Cash | 3185 | ||
| Credit card expense | 65 | |||
| Sales | 3250 | |||
| (To record credit card sales less fee) | ||||
| Cost of goods sold | 1758 | |||
| Merchandise inventory | 1758 | |||
| (to record cost of sales) | ||||
| Aug 22 | Allowance for doubtful account | 498 | ||
| Account receivable C Co | 498 | |||
| (to write off account due) | ||||
| Aug 25 | Cash | 1225 | ||
| Account Receivable G.C | 1225 | |||
| (To record cash received in payment of account) | ||||
| Cash | 3185 | |||
| Account Receivable G.C | 3185 | |||
| (To record cash received in payment of account) | ||||
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Students have asked these similar questions
Credit Card Sales
Jamie’s Fabrics accepts cash, personal checks, and two credit cards when customers buy merchandise. With the Great American Bank Card, Jamie’s Fabrics receives an immediate deposit in its checking account when credit card sales slips are deposited at the bank. The bank charges a three percent fee. With the United Merchants Card, Jamie’s Fabrics mails the credit card sales slips to United Merchants’ regional processing center each day. United Merchants accumulates these slips for two days and then mails a check to Jamie’s Fabrics, after deducting a three percent fee. Prepare journal entries to record the following:
Round to the nearest dollar.
a.
Sales for March 15 were as follows:
Cash and checks
$950
Great American Bank Card (Deposited at the end of the day)
1,200
United Merchants Card (Mailed at the end of the day)
700
$2,850
b.
Received a check for $1,900 from United Merchants on March 20.
a.
General Journal
Date
Description…
MacKenzie Company sold $480 of merchandise to a customer who used a Regional Bank credit card. Regional Bank charges a 2.0% fee for sales on
its credit cards. The Journal entry to record this sales transaction would be:
Multiple Choice
Debit Cash of $480 and credit Accounts Receivable $480.
Debit Cash $470.40; debit Credit Card Expense $9.60 and credit Sales $480.
O
Debit Cash $470.40 and credit Sales $470.40.
O
Debit Cash of $480 and credit Sales $480.
O
Debit Accounts Receivable $480 and credit Sales $480.
MacKenzie Company sold $220 of merchandise to a customer who used a Regional Bank credit card. Regional Bank charges a 5.0% fee for sales on
its credit cards. The journal entry to record this sales transaction would be:
Multiple Choice
Debit Cash $209.00; debit Credit Card Expense $11.00 and credit Sales $220.
Debit Cash of $220 and credit Accounts Receivable-Regional $220.
Debit Cash of $220 and credit Sales $220.
О
Debit Cash $209.00 and credit Sales $209.00.
О
Debit Accounts Receivable-Regional $209.00; debit Credit Card Expense $11.00 and credit Sales $220.
Chapter 7 Solutions
Financial Accounting: Information for Decisions
Ch. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQ
Ch. 7 - Prob. 1QSCh. 7 - Solstice Company determines on October 1 that it...Ch. 7 - Solstice Company determines on October 1 that it...Ch. 7 - The following list describes aspects of either the...Ch. 7 - Gomez Corp. uses the allowance method to account...Ch. 7 - Prob. 6QSCh. 7 - Prob. 7QSCh. 7 - Prob. 8QSCh. 7 - Prob. 9QSCh. 7 - Prob. 10QSCh. 7 - Prob. 11QSCh. 7 - Prob. 12QSCh. 7 - Prob. 13QSCh. 7 - Accounts receivable subsidiary ledger; schedule of...Ch. 7 - Prob. 2ECh. 7 - Prob. 3ECh. 7 - Prob. 4ECh. 7 - Percent of accounts receivable method P2 At each...Ch. 7 - Aging of receivables method P2 Daley Company...Ch. 7 - Percent of receivables method P2 Refer to the...Ch. 7 - Writing off receivables P2 Refer to the...Ch. 7 - Prob. 9ECh. 7 - Prob. 10ECh. 7 - Notes receivable transactions P3 Refer to the...Ch. 7 - Prob. 12ECh. 7 - Prob. 13ECh. 7 - Prob. 14ECh. 7 - Prob. 15ECh. 7 - Prob. 16ECh. 7 - Sales on account and credit card sales C1 Mayfair...Ch. 7 - Estimating and reporting bad debts P2 At December...Ch. 7 - Aging accounts receivable and accounting for bad...Ch. 7 - Prob. 4PSACh. 7 - Prob. 5PSACh. 7 - Prob. 1PSBCh. 7 - Prob. 2PSBCh. 7 - Prob. 3PSBCh. 7 - Prob. 4PSBCh. 7 - Prob. 5PSBCh. 7 - Santana Rey, owner of Business Solutions, realizes...Ch. 7 - Comparative figures for Apple and Google follow....Ch. 7 - Anton Blair is the manager of a medium-size...Ch. 7 - As the accountant for Pure-Air Distributing, you...Ch. 7 - Access eBays February 6, 2015, filing of its 10-K...Ch. 7 - Prob. 7BTNCh. 7 - Prob. 9BTN
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