Accounting for credit card sales Levine Company allows customers to use two credit card...

Accounting for credit card sales

Levine Company allows customers to use two credit cards in charging purchases. With the Omni Bank Card, Levine receives an immediate credit to its account when it deposits sales receipts. Omni assesses a 4% service charge for credit card sales. The second credit card that Levine accepts is the Continental Card. Levine sends its accumulated receipts to Continental on a weekly basis and is paid by Continental about a week later. Continental assesses a 2.5% charge on sales for using its card. Prepare journal entries to record the following selected credit card transactions of Levine Company: