Question: hi, i am having a hard time solving this problem 7.4B from the book Fundamental Accoutning Principles Volume 1. please help me solve it thank
Problem 7-4B Credit card and debit card transactions L05 On July 15, Smart Vitamin Store sold merchandise to customers for cash of $22,000 (cost $13,200). Merchan- dise costing $12,800 was sold to Medi-Clinic for $15,480 on July 17, terms 2/10, n/30. Sales totalling $190,000 (cost $114,000) were recorded on July 20 to customers using MasterCard (assume a 2.5% fee). On July 25, sales of $102,000 (cost $61,200) were made to debit card customers. The bank charges Smart Vitamin a flat fee of 0.45% on all debit card transactions. Required Prepare journal entries for each of the transactions described (assume a perpetual inventory system) Analysis Component: Identify the advantages and disadvantages of each type of sale: cash sale, credit sale, credit card sale, or debit card sale. Explain why Smart Vitamin would likely accept all these types of sales. 525 Problem 7-4B Credit card and debit card transactions L05 On July 15, Smart Vitamin Store sold merchandise to customers for cash of $22,000 (cost $13,200). Merchan- dise costing $12,800 was sold to Medi-Clinic for $15,480 on July 17, terms 2/10, n/30. Sales totalling $190,000 (cost $114,000) were recorded on July 20 to customers using MasterCard (assume a 2.5% fee). On July 25, sales of $102,000 (cost $61,200) were made to debit card customers. The bank charges Smart Vitamin a flat fee of 0.45% on all debit card transactions. Required Prepare journal entries for each of the transactions described (assume a perpetual inventory system) Analysis Component: Identify the advantages and disadvantages of each type of sale: cash sale, credit sale, credit card sale, or debit card sale. Explain why Smart Vitamin would likely accept all these types of sales. 525
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