Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer again, first time was wrong. Credit Card Sales Historically, 60 percent of the customer bills at the Andrews' Supper Club have been paid

Please answer again, first time was wrong.

Credit Card Sales Historically, 60 percent of the customer bills at the Andrews' Supper Club have been paid with cash or check, and 40 percent have been paid using either the Great American Bank Card or the United Merchants Card. Andrews pays a 4% fee with both cards. Great American Bank deposits cash in Andrews' checking account when the credit card sales slips are deposited. United Merchants makes an electronic funds transfer three days after the sales slips are mailed. Prepare journal entries to record the following:

Round to the nearest dollar.

a. Sales for September 10 were as follows:
Cash and checks $43,500
Great American Bank Card (Deposited at the end of the day) 18,270
United Merchants Card (Mailed at the end of the day) 16,530
$78,300
b. On September 13, Andrews received an electronic funds transfer from
United Merchants for the September 10 sales.

a.

General Journal
Date Description Debit Credit
Sept.10 Cash $Answer $Answer
AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue Answer Answer
Credit Card Fee Expense Answer Answer
AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue Answer Answer
To record cash and credit card sales.

b.

General Journal
Date Description Debit Credit
Sept.13 AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue $Answer $Answer
AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue Answer Answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Inside Accounting The Sociology Of Financial Reporting And Auditing

Authors: David Leung

1st Edition

1138251178, 9781138251175

More Books

Students also viewed these Accounting questions