Woods Co Uses a Perpetual Inventory System, and Accepts the World

question 107

Essay

Woods Co. uses a perpetual inventory system, and accepts the World Express credit card from its customers. World Express charges a 3.5% service fee and all credit card receipts deposited are credited to the company account on the day of deposit. On February 28, Woods sold $24,000 worth of merchandise to customers (that had cost $14,400) using the World Express charge card. Prepare the journal entries to record February 28 sales.

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Definitions:

New Small Business

A recently established company that operates on a smaller scale compared to larger corporations.

Customer Base

The group of customers who repeatedly purchase the goods or services of a business, serving as the main source of revenue for the company.

Intellectual Capital

The intangible assets of a business, including human knowledge, relationships, and organizational processes, that contribute to its competitive edge.

Business Assets

Business assets are resources owned by a company that are expected to provide future economic benefits, including tangible assets like property and equipment, as well as intangible assets such as patents and trademarks.