Mercks Uses the Perpetual Inventory System, and Accepts the Discovery

question 104

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 Sold merchandise for $4,500 (that had cost $2,100) and accepted the customer's Discovery card.

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Definitions:

Aspirin

A medication used to reduce pain, fever, or inflammation.

Frequency

The rate or number of occurrences of a repeating event per unit of time, or in discrete terms, the number of times a particular value appears in a data set.

Emergency Room

A specialized department within a hospital that provides immediate treatment for acute and urgent medical conditions.

Slopes

The measure of the steepness or incline of a line, often represented as the ratio of the change in the y-value over the change in the x-value.