Credit Card Sales

The Green Roof accepts cash, personal checks, and two credit cards when cus$-$

tomers buy merchandise. With the Great American Bank Card, The Green Roof receives an immedi$-$

ate deposit in its checking account when credit card sales slips are deposited at the bank. The bank

charges a two percent fee. With the United Merchants Card, The Green Roof mails the credit card

sales slips to United Merchants$$ regional processing center each day. United Merchants accumulates

these slips for three days and then mails a check to The Green Roof, after deducting a two percent fee.

Prepare journal entries to record the following:

a$.$

Sales for March $15$ were as follows:

MBC

H

o

m

w

o

r

k

e

LO$2$

MBC

H

o

m

w

o

r

k

e

LO$1,2$

MBC

H

o

m

w

o

r

k

e

LO$5$

MBC

H

o

m

w

o

r

k

e

LO$3$

$8-27$

Chapter $8$

Accounting for Receivables

$$ Cambridge Business Publishers

Cash and checks

$.............................................................$

$$1,800$

Great American Bank Card $($Deposited at the end of the day$)$

$...........................$

$2,500$

United Merchants Card $($Mailed at the end of the day$)$

$.................................$

$1,400$

$$5,700$

b$.$

Received a check for $$4,050$ from United Merchants on March $20.$