Luna Company accepted credit cards in payment for $7,250 of services performed during July Year 1. The credit card company charged Luna a 2.50 percent service fee; it paid Luna as soon as it received the invoices.

Required

Prepare the general journal entry to record the service revenue.

Prepare the general journal entry for the collection of the receivable from the credit card company.

Based on this information alone, what is the amount of net income earned during the month of July?