LO6. How are credit card sales recorded?

1. ABC Company sells merchandise inventory (ignore Cost Of Goods Sold) to a customer for $1,000. The customer pays with a third-party credit card and the card processor charges a 2% fee and deposits the net amount. Record the transaction.

Date	Accounts and Explanation	Debit	Credit

LO7. How can the bank account be used as a control device?

1. What is the adjusted bank balance given the following information: Ending balance according to the bank records is $10,000; outstanding checks are $3,000; and a deposit in transit is $2,000. Show your work.

2. What is the adjusted book balance given the following information: Ending balance according to the companys cash account is $9,000; interest revenue earned on bank balance is $50; bank service charge of $30; EFT for payment of utility bill of $100; and NSF check of $40. Show your work.