Carfox Auto Parts allows customers to pay for merchandise with cash, debit cards, bank credit cards, or a Carfox credit card. The bank charges Carfox $1.00 for each debit card sale and a 4% fee for bank credit card sales. On September 25 a customer makes a $1,200 purchase from Carfox using her debit card. Required: a) Prepare Carfox's journal entry to record this transaction. b) Assume instead the customer pays for her purchase using her MasterCard. Record the transaction. c) Assume instead the customer uses her Çarfox store credit card. Record the transaction.

Carfox Auto Parts allows customers to pay for merchandise with cash, debit cards, bank credit cards, or a Carfox credit card. The bank charges Carfox $1.00 for each debit card sale and a 4% fee for bank credit card sales. On September 25 a customer makes a $1,200 purchase from Carfox using her debit card. Required: a) Prepare Carfox's journal entry to record this transaction. b) Assume instead the customer pays for her purchase using her MasterCard. Record the transaction. c) Assume instead the customer uses her Çarfox store credit card. Record the transaction.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4Q: American Signs allows customers to pay with their Jones credit card and cash. Jones charges American...

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