Question
Cade's Computers sold a computer to Sally for $500, plus sales tax of 7%. Sally paid with her Hi-Debt Credit card. Per the agreement between
Cade's Computers sold a computer to Sally for $500, plus sales tax of 7%. Sally paid with her Hi-Debt Credit card. Per the agreement between Cade's Computers and Hi-Debt Credit, the transaction fee is 2%. Sally pays her credit card bill in full every month.
Determine the journal entry for Cade's Computers to record this sale:
dr-Cash 535.00
cr-Sales Tax Payable 35.00
cr-Sales 500.00
dr-Cash 535.00
dr-Credit Card Expense 10.70
cr-Sales 545.70
dr-Cash 524.30
dr-Credit Card Expense 10.70
cr-Sales Tax Payable 35.00
cr-Sales 500.00
dr-Cash 524.30
dr-Credit Card Expense 10.70
cr-Sales 535.00
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Auditing For Dummies
Authors: Maire Loughran
1st Edition
0470530715, 978-0470530719
