If a company accepts credit cards, they must record the expense on their books. Please prepare the journal entries for the following scenario:  Company A sells $480,000 on credit card sales.  The credit card charges a 4.5% fee for the use of the card.  The card company also deposits the cash into the company’s bank account the same night as the credit cards are accepted.

Q: Egrane, Inc.'s monthly bank statement showed the ending balance of cash of $14,800. The bank…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: Suppose that the company has a balance sheet as follows at the beginning of the year. In that single…

A: Any part or whole of the transaction that impact both sides of the balance sheet i.e. Assets and…

Q: Student Services Incorporated ("SSI") acts as a wholesaler to the various student retail shops that…

A: Budgeting: It is a process of planning the work to be performed. Under this process a formal plan is…

Q: Which statement about credit cards is true?

A: A credit card is a plastic card that allows you to that allows the holder of the card to make…

Q: Winkler Company borrows $87,000 and pledges its receivables as security. The journal entry to record…

A: An entry for the pledge of accounts receivable will not be recorded. Only the note payable will be…

Q: Daryl Swan operates four video rental stores. She has just received the monthly bank statement at…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: On March 4, Micro Sales makes $12,300 in sales on bank credit cards which charge a 1% service charge…

A: In the case of credit card sales, there can be 2 Instances: 1st Instance: Payment Received by the…

Q: Accompanying a bank statement for Marsh Land Properties is a credit memo for payment on a $15,000…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On March 4, Micro Sales makes $3,900 in sales on bank credit cards that charge a 2% service charge…

A: Gross sales are for $3,900 but 2% less cash will be received after levying the service charge on…

Q: Credit Card Sales  Jamie’s Fabrics accepts cash, personal checks, and two credit cards when…

A: Journal:  Journal is the method of recording monetary business transactions in chronological order.…

Q: ABC Co.'s July bank statement shows a $5,450 cheque received from customer Ms. Mary Opal for…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: [The following information applies to the questions displayed below.] Oscar's Red Carpet Store…

A: A bank reconciliation statement is prepared to reconcile the cash and bank balances. Any…

Q: At April 30, Novak Corp. has the following bank information: Cash balance per bank   $4400…

A: The bank reconciliation has two parts, namely bank balance and book balance. Both of these balances…

Q: On 1 October 2020, Nduundune had 750,000 in the bank and Sh. 126,000 in hand. During the month he…

A: The cash book is prepared to record the cash and bank transactions for the given period.

Q: On March 4, Micro Sales makes $10,500 in sales on bank credit cards that charge a 2% service charge…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: On March 4, Micro Sales makes $6,500 in sales on bank credit cards that charge a 2% service charge…

A: Date Account title and explanation Debit$ Credit$ 04-Mar Cash 6370     Credit…

Q: On the bank stub held by a checking account bank client, write the beginning balance of $100.00 and…

A: The ending balance will be calculated by adding all the deposits along with the beginning balance…

Q: Sunset Tours has a $3,500 account receivable from the Del Mar Rotary. On January 20, the Rotary…

A: Journal: Recording of a business transactions in a chronological order.

Q: Roses Company uses a cash receipts journal. The company charges sales tax, makes bank credit card…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Carefree Company is engaged in the sale of ladies accessories that are being distributed in some…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: If a company record a $200 cheque by debiting salary expense and credit cash for $20, what will it…

A: Lets understand the basics. For understanding how it influence the bank reconciliation statement, we…

Q: Prepare a cash receipts journal and then record the following cash receipts transactions. July 1 The…

A: Special Journal: Special journals are used to record similar kind of transactions to expedite…

Q: Jervis accepts all major bank credit cards, including those issued by Northern Bank (NB), which…

A: Credit card expense = $4,900 x 5% = $245 Credit card expense is borne by the seller and the seller…

Q: Lowell Bank reported the following checking account fees: $2 to see a real-live teller, $20 to…

A: Bank Reconciliation Checkbook Balance  $ 1,009.76 Add:   Interest received  $        1.10…

Q: Romalyn Beauty Products has the following items in its books: Current account - Patricia Bank…

A: Adjusted Undeposited collections =Undeposited collections - Customer check of February 5, 2021=P…

Q: Directions: Record checks, a check card payment, an ATM transaction and a deposit in the checkbook…

A: A check register, or cash disbursements journal, is where you record all of the check and cash…

Q: Catherine's cookies has a beginning balance in the account payable control total account of $8,200.…

A: Ending balance in accounts payable account = Beginning balance + purchase - payment made

Q: Credit Card Sales Ruth Anne's Fabrics accepts cash, personal checks, and two credit cards when…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Your firm’s cash book shows a credit bank balance of $1,240 at 30 April 2021. On comparison with the…

A: A bank reconciliation statement appears to be an overview of banking and business activity that…

Q: Damon Company receives its monthly bank statement, which reports a balance of $2,000. After…

A: Deposits in transit: Deposit in transit means the money received by a company and recorded in the…

Q: [The following information applies to the questions displayed below.] Oscar's Red Carpet Store…

A: Journal entry: Journal is a book of prime entry or a book of original entry in which transactions…

Q: Suraya Enterprise has a current Bak Kasih Berhad account with Bank Kasih Berhad. Below Bank…

A: Bank Reconciliation statement is prepared at the end of the year to reconcile the balances of bank…

Q: Jervis sells $75,000 of its accounts receivable to Northern Bank in order to obtain necessary cash.…

A: Factoring means the sale of Accounts receivable to third party for cash.Companies sell their…

Q: A check was presented to be collected in favor of the customer. Ahmed has a savings account in the…

A: Answer: Whenever any amount has been issued to transfer between banks the entry is posted as: Bank…

Q: Emporium bank lends money to a customer on a six month note. What journal entry does the bank…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: The Cash account of Lydia reported a balance of RM2, 540 at December 31, 2018. There were…

A: Bank reconciliation prepared by the business organisation in which it was used for matching bank…

Q: Daryl Swan operates four video rental stores. She has just received the monthly bank statement at…

A: Bank Reconciliation statement is used to adjust the balances of cash book and pass book to make them…

Q: Melody, Inc., accepts a national credit card. The collection fee is 6%. If credit card sales are…

A: Sales mean the amount to be received by selling the goods. Any amount deducted as fees will be…

Q: Archer allows customers to use bank credit cards to charge purchases.  The bank used by Archer…

A: Credit card expense = Total bank credit card receipt  * Rate of processing fee Total bank credit…

Q: I need the answer as soon as possible

A: Answer: Whenever any amount has been issued to transfer between banks the entry is posted as: Bank…

Q: ETHICS CASE You are the assistant controller in charge of general ledger accounting at Hallasan…

A: Ethics: It is a principle like integrity, honesty and morals. Ethics are very important everywhere…

Q: Catherine's cookies has a beginning balance in the accounts payable  total account of $8,200. In the…

A: Accounts payable balance represents the amount that is payable to suppliers or vendors for the…

Q: Which of the following practices by a credit card company results in lower interest charges to the…

A: Credit card:   Credit card is a card issued to customers for making payment toward goods and…

Q: Your accountant goes through the mail and opens the bank statement for the month of February…

A: A bank reconciliation statement (BRS) reconciles an entity's bank account with its financial…

Q: Supposed that you have a business, and you are going to prepare checks for the

A: Working Notes :-                       1.   Total deposit & check payments , auto…

Q: Yeopay Plumbing Supply accepts bank credit cards and offers established plumbers charge accounts…

A: The question is based on the concept of Cost Accounting.

Q: Jessie has a cash account per general ledger that shows a balance of $78,659 at October 31, 2021.…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Credit card

A credit card is provided by financial institutions or banks, which permits a person to borrow money on a preapproved limit for purchases on a credit basis. The credit limit is decided by the institution and bank which issues a credit card depending on the person’s credit score and income. A cardholder can use the card for credit purchases, a balance transfer, cash advances.