Executive Air Travel, Inc., accepts cash or credit card payment from customers. During May, Executive provided $200,000 worth of flight tickets to customers who used a Visa card to pay for their trips. Visa charges Executive 2% of ticket sales for card services. Use the accounting equation to show how Executive will record these ticket sales. Why would Executive accept Visa cards?
Answer to relevant QuestionsOn October 1, 2009, ACME Athletic Equipment Company purchased athletic equipment on account for $10,500 from Sporting Goods Unlimited. On November 1, ACME renegotiated its debt by signing a three-month promissory note at an ...Prepare a bank reconciliation at August 31 for Randy’s Toy Box using the following information: Company’s cash account balance, August 31 ......$6,500.00Bank statement ending balance, August 31 ........ ...Quality Supplier, Inc., accepts cash or credit card payment from customers. During June, Quality provided $170,000 worth of supplies to customers who used Discover cards to pay for their purchases. Discover charges Quality ...Evaluate the following scenarios, assuming both companies use the accounts receivable method of estimating bad debts expense:a. At year end, Tate Company has accounts receivable of $89,000. The allowance for uncollectible ...Baby Trails Toys had the following transactions during the first half of 2009:January 2 Sold merchandise on account to Thumbelina & Company, $14,000. The cost of the merchandise sold was $8,000.February 3 Accepted a 90-day ...
Post your question