Z-mart uses the perpetual inventory system and has its own credit card. z-mart charges 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 $2,900 (that had cost $1,600) and accepted the customer’s z-mart store credit card. may 31 z-mart recorded $4 of interest earned from its store credit card as of this month-end. prepare journal entries to record the above credit card transactions of z-mart.

                                                            Debit                Credit

Accounts Receivable                           2,900  

Sales                                                                               2,900

Cost of goods sold                                 1,600

Merchandise                                                                    1,600

Accounts Receivable                               4

Interest revenue                                                                     4                                                                              

Explanation:

paying attention to the details