Chat with AI
College Accounting 2nd Edition by David Haddock, John Price,Michael Farina
Edition 2ISBN: 978-0073396958College Accounting 2nd Edition by David Haddock, John Price,Michael Farina
Edition 2ISBN: 978-0073396958 Exercise 23
Recording sales made for cash, open account, and with credit cards.
Unmatched Elegance Gift Shop sells cards, supplies, and various holiday greeting cards. Sales to retail customers are subject to an 8 percent sales tax. The firm sells its merchandise for cash; to customers using bank credit cards, such as MasterCard and VISA; and to customers using American Express. The bank credit cards charge a 2 percent fee. American Express charges a 3 percent fee. Unmatched Elegance Gift Shop also grants trade discounts to certain wholesale customers who place large orders. These orders are not subject to sales tax. During February 2013, Unmatched Elegance Gift Shop engaged in the following transactions:
INSTRUCTIONS
1. Open the general ledger accounts indicated below and enter the balances as of February 1, 2013.
2. Record the transactions in a general journal. Use 10 as the journal page number.
3. Post the entries from the general journal to the appropriate accounts in the general ledger.
GENERAL LEDGER ACCOUNTS
Analyze: What was the total credit card expense incurred in February?
Unmatched Elegance Gift Shop sells cards, supplies, and various holiday greeting cards. Sales to retail customers are subject to an 8 percent sales tax. The firm sells its merchandise for cash; to customers using bank credit cards, such as MasterCard and VISA; and to customers using American Express. The bank credit cards charge a 2 percent fee. American Express charges a 3 percent fee. Unmatched Elegance Gift Shop also grants trade discounts to certain wholesale customers who place large orders. These orders are not subject to sales tax. During February 2013, Unmatched Elegance Gift Shop engaged in the following transactions:
INSTRUCTIONS
1. Open the general ledger accounts indicated below and enter the balances as of February 1, 2013.
2. Record the transactions in a general journal. Use 10 as the journal page number.
3. Post the entries from the general journal to the appropriate accounts in the general ledger.
GENERAL LEDGER ACCOUNTS
Analyze: What was the total credit card expense incurred in February?
Explanation
Verified
Verified
Recording sale made on account with a sa...
College Accounting 2nd Edition by David Haddock, John Price,Michael Farina
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
