Quickbooks Online Accounting
3rd Edition
ISBN: 9780357391693
Author: Owen
Publisher: Cengage
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If Abby INC sells items to a customer who uses a credit card for $1100 and there is a credit card fee of 1.5% Abby will record an : ______
Round your final answer to the nearest dollar
A. DEBIT TO ACCOUNT RECIEABLE FOR $1083
B. Credit to sales revenue for $1083
C. debit to sales expense for $17
D. Debit to credit card discount expense for $17
PLEASE TYPE IT AND NOT HANDWRITTEN
Here is a bill from a credit card company that a credit card user received:
May 1: Unpaid Balance = P42,500.75; May 10: Payment Received = P2,125.00; May 15: Purchases = P1,450. Compute the total amount due at the end the billing period which is May 25.
A small retailer allows customers to use two different credit cards in charging purchases. The CC Bank Card assesses a 4.6% service charge for credit card sales. The VIZA Card assesses a 3.8% charge on sales for using its card. This retailer also has its own store credit card. As of Feb 28 month-end, the retailer earned $65 in net interest revenue on its own card.
Prepare journal entries to record the following selected credit card transactions.
Feb. 2 Sold merchandise for $3,000 (that had cost $1800) and accepted the customer’s CC Bank Card.
Feb. 6 Sold merchandise for $2200 (that had cost $1500) and accepted the customer’s VIZA Card.
Feb 28 Recognized the $65 interest revenue earned on its store credit card for January.
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