Question

Credit Card Sales Historically 60 percent of the customer bills at the Andrews Supper Ou have been paid with cash or check, and 40 percent have been paid using either the Great American Bank Card or the United Merchant Card Andrews pays a four percent fee with both cards. Great American Bank deposit 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 sis are mailed. Prepare journal entries to record the following: Round to the nearest dollar Sales for September 10 Cash and checks Great American Bank Card Depo at the end of the day 500 United Merchants Card at the end of the day Marches the Seb o Credit Card e Expense

Answer 1

Амшқ:- Computation of fee to be charged by both the cards - (Amount in 18" (Note-1)" Great American Bank chited Merchants Card Card 500 X 4%. = 20$ 300 x 4%=12$ - Total = 20 & + 12$ = 32$ la) Dr. T ch. Sep-10 - Cash Al Dr. Great Americom Bank Cald Alc Dr. Credit Card ree Exp Dr. 32 - Note- 1) Chited Merchants Card Dr. 288 1340 480 2140 To sales Alc (To record Cash and credit card sales) Sep 13 (6) Bank Al Dr. 288 288 To Chisted Merchants Card Alc (to record receipt of Check from chuted Merchants)