Exercise 7-3 Sales on store credit card LO C1

Z-Mart uses the perpetual inventory system and allows customers to use the Z-Mart store credit card in charging purchases. Z-Mart assesses a per-month interest fee for any unpaid balance on its store credit card at each month-end.

Apr.		30		Z-Mart sold merchandise for $2,800 (that had cost $1,550) and accepted the customer’s Z-Mart store credit card.
May		31		Z-Mart recorded $3 of interest earned from its store credit card as of this month-end.

Prepare journal entries to record the above selected credit card transactions of Z-Mart.

No	Date	General Journal	Debit	Credit
1	Apr 30	Accounts receivable	2,800
		Sales		2,800
2	Apr 30	Cost of goods sold	1,550
		Merchandise inventory		1,550
3	May 31	Accounts receivable	3
		Interest revenue		3