Name:
Problem 6-1SA
The Country Kitchen accepts three credit cards:  (1) their own credit card; (2) the Local Merchant card, which charges a 3% fee and must be mailed to the company for payment; and  (3) the North East Bank Card, which charges a 5% fee and is accepted by the bank for deposit. All sales are subject to 5% sales tax.  Prepare the general journal entries to record the following transactions. Post to the accounts receivable control account (ledger), the accounts receivable subsidiary ledger and prepare the schedule of accounts.
Mar. 1 Sold $120 worth of merchandise to a cash customer.
3 Sold $75 worth of merchandise to Roberta Lee accepting the store’s credit card.
4 Sold $80 worth of merchandise accepting the North East Bank.
4 Sold $50 worth of merchandise accepting the Local Merchant card.
5 Sold $30 worth of merchandise accepting the Local Merchant card.
6 Sold $140 worth of merchandise to a cash customer.
7 Received full payment from Roberta Lee.
8 Sold $100 worth of merchandise accepting the North East Bank card
8 Sold $70 worth of merchandise accepting the Local Merchant card.
9 Roberta Lee returned $20 worth of merchandise for a cash refund.
10 Mailed the invoices to the Local Merchant Card Co.
24 Received payment from the Local Merchant Card Co.

Answer rating: 100% (QA)

In the books of Country Kitchen Date Account Titles Debit Credit Mar 1 ... View the full answer