Question
Please answer. Credit Card Sales Historically, 60 percent of the customer bills at the Andrews' Supper Club have been paid with cash or check, and
Please answer.
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 | |
To record receipt of check from United Merchants. |
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