Chilton Company allows a few customers to make sales on credit. Other customers may use either of

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Chilton Company allows a few customers to make sales on credit. Other customers may use either of two credit cards. The American Bank makes a \(3 \%\) service charge for sales on its credit card but immediately credits the checking account of its commercial customers when credit card receipts are deposited. Chilton deposits the American Bank credit card receipts at the close of each business day.

When customers use the Western Credit Card, Chilton Company accumulates the receipts for two or three days and then submits them to the Western Credit


Company for payment. Western makes a \(4 \%\) service charge and usually pays within one week of being billed.
Chilton Company completed the following transactions:
Apr. 4 Sold merchandise on credit to Joe Blake for \(\$ 1,750\). (Terms of all credit sales are \(2 / 15, \mathrm{n} / 60\).)
5 Sold merchandise for \(\$ 3,250\) to customers who used their American Bank credit cards. Sold merchandise for \(\$ 3,600\) to customers who used their Western credit cards.
6 Sold merchandise for \(\$ 2,400\) to customers who used their Western credit cards.
8 Wrote off the account of T. Kurth against the allowance for doubtful accounts. The \(\$ 500\) balance in Kurth's account stemmed from a credit sale in August of last year.
9 The Western credit card receipts accumulated since April 4 were submitted to the credit card company for payment.
19 Received Joe Blake's check paying for the purchase of April 4.
20 Received the amount due from Western Credit Company.
\section*{Required}
Prepare general journal entries to record the above transactions.

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Financial Accounting

ISBN: 9780256091939

5th Edition

Authors: Kermit D. Larson, Paul B. W. Miller

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