Answer:
The journal entries are in the explanation.
Explanation:
8 - Sold merchandise and accepted the customer’s Suntrust Bank Card.
(Debit) Cash 8,064 (8,400 X 0.96= 8,064)
(Debit) Credit card expense 336 (8,400 X 0.04=336)
(Credit) Sales 8,400
(Debit) Costs of goods sold 6,000
(Credit) Merchandise inventory 6,000
12 - Sold merchandise and accepted the customer’s Continental Card.
(Debit) Cash 5,460 (5,600 X 0.975=5,460 )
(Debit) Credit card expense 140 (5,600 X 0.025=140)
(Credit) Sales 5,600
(Debit) Costs of goods sold 3,500
(Credit) Merchandise inventory 3,500
Journal entries are passed by the organization for the purpose of recording day-to-day transactions. The Merchandise Inventory is the cost of goods on hand and available for sale at any time
Goods acquired by a distributor, retailer, or retailer from suppliers, for the purpose of selling goods to third parties are called Merchandise Inventory.
This could be one of the largest assets in the balance sheet of other types of businesses.
The journal entries of Merchandise inventories passed by the Levine Company are attached in the image below.
The calculation required to understand the value of Sales and Credit expenses of Merchandise inventories are as follows:
[tex]\rm\,Working\, Note:\\\\1. Transaction\,of\,April\,8:\\Cash = 8,400 - (8,400\times\dfrac{4}{100})\\\rm\,Cash = 8,400 - 336\\Cash = \$ 8,064\\\\2. Credit\,card \,expense \,is \,calculated\, on \,the \,sale \,amount = 4\% of \,\$\,8,400 = 336[/tex]
[tex]\rm\,Working\, Note:\\\\1. Transaction\,of\,April\,12:\\Cash = 5,600 - (5,600\times\dfrac{2.5}{100})\\\rm\,Cash = 5,600 - 140\\Cash = \$ 5,460\\\\2. Credit\,card \,expense \,is \,calculated\, on \,the \,sale \,amount = 2.5\% of \,\$\,5,600 = 140[/tex]
Thus, these are the journal entries passed by Levine company to record the transactions of Merchandise inventories.
To learn more about Merchandise Inventories, refer to the link:
https://brainly.com/question/13414269
