RECORDING SALES TRANSACTIONS. Customers of Cheryl’s Specialty Shops may pay for purchases with cash, national credit cards, and Cheryl’s own credit card.

On August 19, Cheryl’s made sales as follows:

Visa and MasterCard have a 4.3% merchant’s charge. American Express and Discover have a 4% merchant’s charge.
REQUIRED:
1. Prepare the journal entry to record sales for August 19.
2. From the viewpoint of Cheryl’s Specialty Shops, what are the advantages and disadvantages of the two types of credit cards?

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Cash sales $20,540 Credit sales: American Express credit card 15,210 Cheryl's own credit card 47,380 Discover credit card 4,250 Visa MasterCard 12,330 10,970