Question

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 1

In the books of Country Kitchen :

Date	Account Titles	Debit	Credit
		$	$
Mar 1	Cash	120
	Sales		120
Mar 3	Accounts Receivable: Roberta Lee	75
	Sales		75
Mar 4	Cash	76
	Credit Card Expense	4
	Sales		80
Mar 4	Accounts Receivable : Local Merchant Card Co.	48.50
	Credit Card Expense	1.50
	Sales		50
Mar 5	Accounts Receivable : Local Merchant Card Co.	29.10
	Credit Card Expense	0.90
	Sales		30
Mar 6	Cash	140
	Sales		140
Mar 7	Cash	75
	Accounts Receivable: Roberta Lee		75
Mar 8	Cash	95
	Credit Card Expense	5
	Sales		100
Mar 8	Accounts Receivable: Local Merchant Card Co.	67.90
	Credit Card Expense	2.1
	Sales		70
Mar 9	Sales Returns and Allowances	20
	Cash		20
Mar 10	No journal entry required
Mar 24	Cash	145.50
	Accounts Receivable: Local Merchant Card Co.		145.50