Using the Perpetual Inventory System,journalize the Entries for the Following

question 113

Essay

Using the perpetual inventory system,journalize the entries for the following selected transactions:
a Sold merchandise on account for $12,000,terms n/30.The cost of the merchandise sold was $6,500.
b Sold merchandise to customers who used MasterCard and VISA,$9,500.The cost of the merchandise sold was $5,300.
c Sold merchandise to customers who used American Express,$2,900.The cost of the merchandise sold was $1,700.
d Paid an invoice from First National Bank for $385,representing a service fee for processing MasterCard and VISA sales.
e Received $2,825 from American Express Company after a $75 collection fee had been deducted.

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Definitions:

Working Condition Fringes

These are non-taxable benefits provided by an employer for the benefit of the employee, related directly to the nature of the job.

Professional Organization Dues

Membership fees paid to belong to an organization related to one's professional field, which may be tax-deductible.

Employer-provided Vehicle

An employer-provided vehicle is a car or other vehicle that a company provides to its employees for their use, often as part of their compensation or benefits package.

Accrual Basis of Accounting

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.