Exercise 7.5 recording sales made with bank credit cards and american express, with 8 percent sales tax. lo 7-1 record the following transactions of lisa’s fashion boutique in a general journal. lisa's fashion boutique operates in a state with 8% sales tax. (round your intermediate calculations and final answers to 2 decimal places): date transactions 2019 feb. 2 sold merchandise for cash totaling $3,700 to customers using bank credit cards. record the 14 percent discount on credit card sales at time of sale. 15 sold merchandise totaling $3,100 to customers using american express. 20 received amount due from american express, less their 15 percent discount, for sales made by customers using american express on february 15.

The Journal entries are as follows:

(i) On 2019 Feb. 2,

Cash A/c                               Dr. $3,436.56

Credit card expense A/c     Dr. $559.44

To sales                                                             $3,700

To sales tax payable                                         $296

(To record entry for sales and discount on credit card sales)

(ii) On 2019 Feb. 15,

Accounts receivable A/c[$3,100 + ($3,100×8%)]   Dr. $3,348

To sales                                                                                         $3,100

To sales tax payable($3,100×8%)                                                $248

(To record sales made using american express)

(iii) On 2019 Feb. 20,

Credit card expense A/c ($3,348×15%)    Dr. $502.2

Cash A/c ($3,348 - $502.2)                       Dr. $2,845.8

To Accounts receivable A/c                                             $3,348

(To record receivable for sold merchandise and credit card expense)

Workings:

Cash to be received from Feb 2 sale:

= [Sales + sales tax payable] - credit card expense

= [$3,700 + ($3,700 × 8%)] - [$3,700 + ($3,700 × 8%)] × 14%

= $3,996 - $559.44

= $3,436.56

definitely a