Restaurants do a large volume of business by credit and debit cards. Suppose

Winter Retreats

restaurant had these transactions on January 28,

2016:

National Express credit card sales	$9,400
ValueCard debit card sales	8,000

Requirements

1.	Suppose Winter Retreats' processor charges a 6% fee and deposits sales net of the fee. Journalize these sales transactions for the restaurant.
2.	Suppose Winter Retreats' processor charges a 6% fee and deposits sales using the gross method. Journalize these sales transactions for the restaurant.

Requirement 1. Suppose

Winter Retreats'

processor charges a

6%

fee and deposits sales net of the fee. Journalize these sale transactions for the restaurant. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Journalize the credit sales net of the fee, first.

Accounts and Explanation

Debit

Credit

Now journalize the debit card sales net of the fee.

	Accounts and Explanation	Debit	Credit

Requirement 2. Suppose

Winter Retreats'

processor charges a

6%

fee and deposits sales using the gross method. Journalize these sale transactions for the restaurant. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

First journalize the credit sales using the gross method.

			Accounts and Explanation	Debit	Credit

Lastly journalize the debit sales using the gross method.

			Accounts and Explanation	Debit	Credit