Question

Luna Company accepted credit cards in payment for $6,000 of services performed during July 2016. The credit card company charged Luna a 4 percent service fee; it paid Luna as soon as it received the invoices.
Required
a. Prepare the general journal entry to record the service revenue.
b. Prepare the general journal entry for the collection of the receivable from the credit card company.
c. Based on this information alone, what is the amount of net income earned during the month of July?


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  • CreatedApril 20, 2015
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