Concept explainers
Credit card sales
Credit card is an electronic card, which allows the credit card holders to buy something on credit at convenience, and without paying immediate cash.
Businesses allow customers to buy its products through bank credit cards, such sales are termed as credit card sales. For such convenience, bank charges some percentage as service charge expense on the total value of goods, or services purchased on credit.
Accounts receivable:
Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods, and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.
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FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
- American Signs allows customers to pay with their Jones credit card and cash. Jones charges American Signs a 3.5% service fee for each credit sale using its card. Credit sales for the month of June total $328,430, where 40% of those sales were made using the Jones credit card. Based on this information, what will be the total in Credit Card Expense at the end of June?arrow_forwardCurrent Attempt in Progress The following are two independent situations. (a) On April 2, Pearl Elston uses her JCPenney Company credit card to purchase merchandise from a JČPenney store for $1,400. On May 1, Elston is billed for the $1,400 amount due. Elston pays $500 on the balance due on May 3. Elston receives a bill dated June 1 for the amount due, including interest at 1% per month on the unpaid balance as of May 3. Prepare the entries on JCPenney Co's books related to the transactions that occurred on April 2, May 3, and June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Creditarrow_forwardplease help me to solve thisarrow_forward
- Please see below. I need help with this in 20 minutes please and thank you.arrow_forwardOn June 30, a printing shop provides $1000 of services to a customer to custom print restaurant menus. The customer is sent a bill on July 5 for the amount due. A check in the amount of $1000 is received from the customer on July 25. The printing shop follows GAAP and applies the revenue recognition principle. When is the $1000 sale recognized?arrow_forwardHome Appliances allows customers to pay for merchandise with cash, debit cards, bank credit cards, or a Home Appliance Credit Card. The bank charges Home Appliances $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 Home Appliances using her debit card. 1. Instructions: Prepare Home Appliances' journal entry to record this transaction. b. Assume instead the customer pays for her purchase using her Mastercard. Record the a. transaction. С. Assume instead the customer uses her Home Appliances store credit card. Record the transaction.arrow_forward
- Can you help me fill out this journal entry?arrow_forwardOn June 12, Music, Incorporated sells $4,000 of goods on account to a credit customer with credit terms of 1/10, n/30. If the customer pays on June 20, select the correct entry to record the receipt of the customer's payment: Multiple Choice Account Name Debit Credit Cash 4,000 Accounts Receivable 4,000 Account Name Debit Credit Accounts Receivable 3,960 Sales Discounts 40 Cash 4,000 Account Name Debit Credit Cash 4,000 Sales Discounts 40 Accounts Receivable 3,960 Account Name Debit Credit Cash 3,960 Sales Discounts 40 Accounts Receivable 4,000arrow_forwardVishnuarrow_forward
- Valley Company purchases merchandise on account for $6,236 from Corn Company with credit terms of 3/10, n/30, FOB shipping point. Corn Company directly pays the shipper $158 cash for freight. What is the amount of the check that Valley will prepare if they pay Corn Company within the discount period? Round your answer to two decimal places and as always, leave out the $ sign and commas.arrow_forwardReview the following transactions. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 330 water bottles for their merchandise inventory, on credit, for $14 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier. Prepare any necessary journal entries for Tolbert Enterprises. If an amount box does not require an entry, leave it blank. Apr. 7 Apr. 15arrow_forwardIf 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 $17arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College