Problem $7\mathrm{.}6$A $($Algo$)$ Recording sales made for cash, on open account, and with credit cards. LO $7-1,7-2$

The Aristocrat Gift Shop sells cards, supplies, and various holiday greeting cards. Sales to retail customers are subject to an $8$ percent sales tax. The firm sells its merchandise for cash; to customers using bank credit cards, such as MasterCard and Visa; and to customers using American Express. The bank credit cards charge a $1$ percent fee. American Express charges a $2$ percent fee. The Aristocrat Gift Shop also grants trade discounts to certain wholesale customers who place large orders. These orders are not subject to sales tax. During February $20$X$1,$ The Aristocrat Gift Shop engaged in the following transactions:

DATE TRANSACTIONS

February $1,20$X$1$ Sold crystal goods to Beautiful Kitchens, a wholesale customer. The list price is $$3,700,$ with a $30$ percent trade discount. This sale is not subject to sales tax. Issued Invoice $5950$ with terms of n$15/$

$.$

February $15,20$X$1$ Recorded cash sales for the period from February $1$ to February $15$ of $$8,200$ plus sales tax of $$656.$

February $15,20$X$1$ Recorded sales for the period from February $1$ to February $15$ to customers using bank credit cards of $$11,700$ plus sales tax of $$936.($Record the $1$ percent credit card expense at this time.$)$

February $16,20$X$1$ Received a check from Beautiful Kitchens in payment of Invoice $5950$ dated February $1.$

February $16,20$X$1$ Sold merchandise to customers using American Express for $$7,700$ plus sales tax of $$616.$

February $17,20$X$1$ Sold a set of marble statues to Lovely Bedrooms, a wholesale customer. The list price is $$7,700,$ with a $20$ percent trade discount. This sale is not subject to sales tax. Issued Invoice $5951$ with terms of n$15/$

$.$

February $20,20$X$1$ Received payment from American Express for the amount billed on February $16,$ less a $2$ percent credit card expense.

February $27,20$X$1$ Received a check from Lovely Bedrooms in payment of Invoice $5951$ dated February $17.$

February $28,20$X$1$ Recorded cash sales for the period from February $16$ to February $28$ of $$7,100$ plus sales tax of $$568.$

February $28,20$X$1$ Recorded sales for the period from February $16$ to February $28$ to customers using bank credit cards of $$15,000$ plus sales tax of $$1,200.($Record the $1$ percent credit card expense at this time.$)$

February $28,20$X$1$ Sold merchandise to customers using American Express for $$8,900$ plus sales tax of $$712.$

Required:

Record the transactions in a general journal.

Post the entries from the general journal to the appropriate accounts in the general ledger.

GENERAL LEDGER ACCOUNTS

$101$ Cash, $$21,930$ Debit $401$ Sales

$121$ Accounts Receivable $521$ Credit Card Expense

$222$ Sales Tax Payable

Analyze:

What was the total credit card expense incurred in February?