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:

Start Date

Refers to the specific date when a company or project officially begins operations or activities.

Fiscal Year

A one-year period used for financial reporting and budgeting, not necessarily aligning with the calendar year.

Tax ID Number

A Tax ID Number, also known as TIN, is a unique identifier assigned to individuals or entities for tax purposes by a government.

Easy Step Interview

A simplified process or set of guidance used in software, often seen in financial or tax preparation programs, to assist users through complex tasks by breaking them down into manageable steps.