lisas fashion boutique operates in a state with 8 percent sales tax on all sales.\ndate transactions\n20x1\nf…

lisas fashion boutique operates in a state with 8 percent sales tax on all sales.\ndate transactions\n20x1\nfeb. 2 sold merchandise totaling $3,300 to customers using bank credit cards. record the 20 percent discount on credit card sales at time of sale.\n15 sold merchandise totaling $4,600 to customers using american express.\n20 received amount due from american express, less their 21 percent discount, for sales made by customers using american express on february 15.\nrequired:\nrecord the above transactions of lisas fashion boutique in a general journal. (round your intermediate calculations and final answers to 2 decimal places.)

lisas fashion boutique operates in a state with 8 percent sales tax on all sales.\ndate transactions\n20x1\nfeb. 2 sold merchandise totaling $3,300 to customers using bank credit cards. record the 20 percent discount on credit card sales at time of sale.\n15 sold merchandise totaling $4,600 to customers using american express.\n20 received amount due from american express, less their 21 percent discount, for sales made by customers using american express on february 15.\nrequired:\nrecord the above transactions of lisas fashion boutique in a general journal. (round your intermediate calculations and final answers to 2 decimal places.)

Answer

Explanation:

Step1: Calculate cash received for Feb 2 sale

The sale amount is $3300. There is a 20% discount on credit - card sales. The cash received is $3300\times(1 - 0.20)=3300\times0.80 = 2640$.

Step2: Calculate credit - card expense for Feb 2 sale

The credit - card expense is the discount amount. So, $3300\times0.20 = 660$.

Step3: Record Feb 15 sale

The sale amount is $4600. The journal entry for the sale on Feb 15 (before receiving payment) is: Debit Accounts Receivable - American Express $4600$ and Credit Sales $4600$.

Step4: Calculate amount received from American Express on Feb 20

The amount due from American Express for the Feb 15 sale is $4600$. After a 21% discount, the amount received is $4600\times(1 - 0.21)=4600\times0.79 = 3634$. The credit - card expense is $4600\times0.21 = 966$. The journal entry on Feb 20 is: Debit Cash $3634$, Debit Credit - card expense $966$, and Credit Accounts Receivable - American Express $4600$.

Answer:

No Date General Journal Debit Credit
1 Feb 2, 20X1 Cash $2640.00$
Credit card expense $660.00$
Sales $3300.00$
2 Feb 15, 20X1 Accounts Receivable - American Express $4600.00$
Sales $4600.00$
3 Feb 20, 20X1 Cash $3634.00$
Credit - card expense $966.00$
Accounts Receivable - American Express $4600.00$