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.