Levine Company uses the perpetual inventory system and allows customers to use two credit cards in charging purchases

Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system).

1. Sold $29,000 of merchandise, that cost $22,200, on MasterCard credit cards. MasterCard charges a 5% fee.
2. Sold $5,900 of merchandise, that cost $3,450, on an assortment of bank credit cards. These cards charge a 4% fee.

No	Transaction	General Journal	Debit	Credit
1	1-a.	Cashselected answer correct	27,550selected answer correct	not attempted
		Credit card expenseselected answer correct	1,450selected answer correct	not attempted
		Salesselected answer correct	not attempted	29,000selected answer correct
2	1-b.	Cost of goods soldselected answer correct	22,200selected answer correct	not attempted
		Merchandise inventoryselected answer correct	not attempted	22,200selected answer correct
3	2-a.	Cashselected answer correct	5,664selected answer correct	not attempted
		Credit card expenseselected answer correct	236selected answer correct	not attempted
		Salesselected answer correct	not attempted	5,900selected answer correct
4	2-b.	Cost of goods soldselected answer correct	3,450selected answer correct	not attempted
		Merchandise inventoryselected answer correct	not attempted	3,450selected answer correct

----------------------------------------------------------------------------------- 2. Levine Company uses the perpetual inventory system and allows customers to use two credit cards in charging purchases. With the Suntrust Bank Card, a 4% service charge for credit card sales is assessed. The second credit card that Levine accepts is the Continental Card. Continental assesses a 2.5% charge on sales for using its card. Apr. 8 Sold merchandise for $7,300 (that had cost $5,395) and accepted the customer's Suntrust Bank Card. 12 Sold merchandise for $6,800 (that had cost $4,406) and accepted the customer's Continental Card. Prepare journal entries to record the above selected credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount.) No Date General Journal Debit Credit 1 Apr 08 Cashselected answer correct 7,008selected answer correct not attempted Credit card expenseselected answer correct 292selected answer correct not attempted Salesselected answer correct not attempted 7,300selected answer correct 2 Apr 08 Cost of goods soldselected answer correct 5,395selected answer correct not attempted Merchandise inventoryselected answer correct not attempted 5,395selected answer correct 3 Apr 12 Cashselected answer correct 6,630selected answer correct not attempted Credit card expenseselected answer correct 170selected answer correct not attempted Salesselected answer correct not attempted 6,800selected answer correct 4 Apr 12 Cost of goods soldselected answer correct 4,406selected answer correct not attempted Merchandise inventoryselected answer correct not attempted 4,406selected answer correct -----------------------------------------------------------------------------------