Answered: Consider the following transaction: On…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 3EA: Consider the following transaction: On March 6, Fun Cards sells 540 card decks with a sales price of...

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Consider the following transaction: On March 6, Fun Cards sells 570 card decks with a sales price of $9 per deck to Padma Singh. The cost to Fun Cards is $3 per deck.

Prepare a journal entry under each of the following conditions. Assume MoneyPlus charges a 3% fee for each sales transaction using its card.

A.	Payment is made using a credit, in-house account.
B.	Payment is made using a MoneyPlus credit card.

Consider the following transaction: On March 6, Fun Cards sells 570 card decks with a sales price of $9 per deck to Padma Singh. The cost to Fun Cards is $3
per deck.
Prepare a journal entry under each of the following conditions. Assume MoneyPlus charges a 3% fee for each sales transaction using its card.
A. Payment is made using a credit, in-house account.
B. Payment is made using a MoneyPlus credit card.
If an amount box does not require an entry, leave it blank. Round your answers to two decimal places.
A. Mar. 6
To record sale of card decks
Mar. 6
To record cost of sale
B. Mar. 6
To record sale of card decks, 3% credit card fee
Mar. 6

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