Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 Bonney's 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 Bonney's 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 Bonney's financial statements. Indicate which statement and how it would be classified 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started