Credit Card Sales Jamie’s Fabrics accepts cash, personal checks, and two credit cards when customers buy merchandise. With the Great American Bank Card, Jamie’s Fabrics receives an immediate deposit in its checking account when credit card sales slips are deposited at the bank. The bank charges a three percent fee. With the United Merchants Card, Jamie’s Fabrics mails the credit card sales slips to United Merchants’ regional processing center each day. United Merchants accumulates these slips for two days and then mails a check to Jamie’s Fabrics, after deducting a three percent fee. Prepare journal entries to record the following: Round to the nearest dollar. a. Sales for March 15 were as follows: Cash and checks $950 Great American Bank Card (Deposited at the end of the day) 1,200 United Merchants Card (Mailed at the end of the day) 700 $2,850 b. Received a check for $1,900 from United Merchants on March 20. a. General Journal Date Description Debit Credit Mar.15 Cash Answer Answer AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue Answer Answer Credit Card Fee Expense Answer Answer AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue Answer Answer To record cash and credit card sales. b. General Journal Date Description Debit Credit Mar.20 AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue Answer Answer AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue Answer Answer To record receipt of check from United Merchants.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.9E

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Credit Card Sales

Jamie’s Fabrics accepts cash, personal checks, and two credit cards when customers buy merchandise. With the Great American Bank Card, Jamie’s Fabrics receives an immediate deposit in its checking account when credit card sales slips are deposited at the bank. The bank charges a three percent fee. With the United Merchants Card, Jamie’s Fabrics mails the credit card sales slips to United Merchants’ regional processing center each day. United Merchants accumulates these slips for two days and then mails a check to Jamie’s Fabrics, after deducting a three percent fee. Prepare journal entries to record the following:

Round to the nearest dollar.

a.	Sales for March 15 were as follows:
	Cash and checks	$950
	Great American Bank Card (Deposited at the end of the day)	1,200
	United Merchants Card (Mailed at the end of the day)	700
		$2,850
b.	Received a check for $1,900 from United Merchants on March 20.

General Journal
Date	Description	Debit	Credit
Mar.15	Cash	Answer	Answer
	AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue	Answer	Answer
	Credit Card Fee Expense	Answer	Answer
	AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue	Answer	Answer
	To record cash and credit card sales.

General Journal
Date	Description	Debit	Credit
Mar.20	AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue	Answer	Answer
	AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue	Answer	Answer
	To record receipt of check from United Merchants.

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