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Levine company uses the perpetual inventory system

03/05/2021 Client: muhammad11 Deadline: 2 Day

Levine Company uses the perpetual inventory system and allows customers to use two credit cards in charging purchases. With the Suntrust Bank Card, Levine receives an immediate credit to its account when it deposits sales receipts. Suntrust assesses a 4% service charge for credit card sales. The second credit card that Levine accepts is the Continental Card. Levine sends its accumulated receipts to Continental on a weekly basis and is paid by Continental about a week later. Continental assesses a 2.5% charge on sales for using its card. Prepare journal entries to record the following selected credit card transactions of Levine Company.
Apr. 8 Sold merchandise for $ 8,400 (that had cost $ 6,000) and accepted the customer’s Suntrust Bank Card. The Suntrust receipts are immediately deposited in Levine’s bank account.
12 Sold merchandise for $ 5,600 (that had cost $ 3,500) and accepted the customer’s Continental Card. Transferred $ 5,600 of credit card receipts to Continental, requesting payment.
20 Received Continental’s check for the April 12 billing, less the service charge.

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