Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Luna Company accepted credit cards in payment for $7,750 of services performed during July Year 1. The credit card company charged Luna a 2.50 percent

image text in transcribed

Luna Company accepted credit cards in payment for $7,750 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 a. Prepare the general journal entry to record the service revenue. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to nearest whole dollar.) View transaction list Journal entry worksheet Record service revenue on credit card payment and credit card expenses. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal b. Prepare the general journal entry for the collection of the receivable from the credit card company. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to nearest whole dollar.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

South Western Federal Taxation 2017 Essentials Of Taxation Individuals And Business Entities

Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen

20th Edition

9780357109144

Students also viewed these Accounting questions