Bonney Market issues credit cards that customers can use to make purchases.

Bonney also accepts bank credit cards and debit cards. In September 2021 the following transactions occurred:

1. Bonney credit card sales totalling $ 40,000.

2. Debit card transactions totalling $ 22,500, made up of 18 individual transactions.

3. Bank credit card sales totalling $ 31,000.

4. Collected $ 28,800 in payments on Bonneys own credit card accounts.

5. Recorded interest charges on overdue Bonney credit card accounts. Total overdue accounts are $ 154,500.

Bonney pays a 2% service charge on bank credit cards. The charge on debit card transactions is $ 0.50 per transaction.

The late payment interest rate on Bonneys credit card is 19%.

Required:

a) Record the September transactions. Ignore any cost of goods sold entry in the sales. transactions.

b) Indicate where the following items affected by the above transactions would be reported in

Bonneys financial statements. Indicate which statement and how it would be classified.

i. Bonney credit card accounts receivable

ii. Interest charged on overdue Bonney credit card accounts

iii. Fees paid on bank credit cards

iv. Transaction fees on debit card transactions