Prepare journal entries for the following credit card sales transactions
Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system).
1. Sold $16,000 of merchandise that cost $7,000, on MasterCard credit cards. The net cash receipts from sales are immediately deposited in the seller’s bank account. MasterCard charges a 4% fee.
2. Sold $18,000 of merchandise that cost $7,800, on an assortment of credit cards. Net cash receipts are received 5 days later, and a 3% fee is charged.
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