Royal Gift Shop sells cards, supplies, and various holidaygreeting cards.Sales to retail customers are subjected to an 8percent sales tax. The firm sells its merchandise for cash; tocustomers using bank credit cards, such as Master Card and Visa;and to customers using American Express.The bank credit cardscharge a 1 percent fee. American Express charged a 2 percent fee.Royal Gift Shop also grants trades discounts to certain wholesalecustomers who place large orders.These orders are not subjected tosale tax. During February 2019, Royal Gift engaged in the followingtransactions.
Date Transactions
Feb 1 Sold crystal good to Lovely Kitchen, whole sale customers.The list price is $ 4,300 with a 25 percent trade discount. Thissale is not subjected to a sales tax. Issued invoice 5950 withterms of n/15
15 Recorded cash sales for the period from February 1 toFebruary 15 of $8,000 plus sales tax of $ 704
15 Recorded sales for the period from February 1 to February 15to customers using bank credit cards of $ 12,300 plus sales tax of$ 984. (Record the 1 percent credit card expenses at thistime.)
16 Receive a check from Lovely Kitchen in payment of Invoice5950 dated February 1
16 Sold merchandise to customers using American Express for$8,300 plus sales tax of $ 664
17 Sold a set of Roman statues to Beautiful Bedroom, a wholesalecustomers. The list price is $ 8,300, with a 30 percent tradeddiscount. The sales is not subjected to sale tax. Issued Invoice5951 with terms of n/15
20 Received payment from American Express for the amount billedon February 16 less a 2 percent credit card expense
27 Received a check for Beautiful Rooms in payment of Invoice5951 dated February 17
28 Recorded cash sales for the period from February 16 toFebruary 28 of $ 7,400 plus sales tax of $ 592
28 Recorded sales for the period from February 16 to February 28to customers using bank credit cards of $ 10,000 plus sales tax of$ 800 (Record the 1 percent credit card expenses at this time)
28 Sold merchandise to customers using American Express for $9,500 plus sales tax of $ 760
Required
Record the transactions in a General Journal
Post the entries from the General Journal to the appropriateaccounts in the general ledgers.
General Ledger Accounts
101 Cash $ 22, 530 Dr
121 Accounts Receivable
222 Sale Tax Payable
401 Sale
521 Credit Card Expense
Analize
What was the total credit card expenses incurred inFebruary?
| General Journal | General Ledgers | Analyze |
| Date | Account Title | Debit | Credit |
| Feb 1, 2019 | | | |
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