Question 1:

Prepare Journal Entries to record the following debit and credit card transactions for Bulk Departmental Store:

July 18 A customer used her debit card to pay for $650 purchase. The company was charged $2 service fee.

July 22 A customer paid for a $1,200 purchase with her visa credit card. The bank charges a service fee of 3%.

July 25 A customer paid for a $500 purchase with his Bulk Department Store credit card.

Question 2:

Kasko stores accepts its own credit card, as well as bank and non-bank credit cards. In January and February, the following transactions occurred:

Jan 05 Made $19,000 of Kasko credit card sales.

Jan 20 Made $ 4,500 of visa credit card sales (Service charge fees 3.25%)

Jan 30 Made a $ 1000 sale to a customer who used a non-bank credit card (service charge fee 3.75%)

Jan 31 Made debit card sales (service charge fee, $0.50 per transaction for 50 transactions) totaling $4,000

Feb 01 Collected $12,000 on Kasko credit card sales.

Feb 14 Collected the amount owing from the credit card company for the January 30 transaction.

Feb 28 Added interest charges of 24% to outstanding Kasko credit card balances.