Mercks Uses the Perpetual Inventory System, and Accepts the Discovery $\quad$

question 148

Essay

Mercks uses the perpetual inventory system, and accepts the Discovery credit card for credit card sales. Discovery charges Mercks a 3% fee, and all credit card receipts deposited are credited to the company account on the day of deposit. Prepare journal entries to record the following transaction.
March 11 $\quad$$\quad$ Sold merchandise for $\$ 4,500$ (that had cost $\$ 2,100$ ) and accepted the
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ customer's Discovery card.

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Definitions:

MTBF Distribution

Statistical representation of the Mean Time Between Failures, indicating the reliability and performance of a system.

High-Technology Batteries

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Component Reliabilities

Measures of a component's ability to perform its required function under stated conditions for a specified period.

Reliable Backup

A dependable system or process that can be used as an alternative in case the primary system fails.