Presented here are two independent situations.

(a) On April 2, Julie Keiser uses her KitchenMart Company credit card to purchase kitchen supply from a KitchenMart store for $1,800. On May 1, Keiser is billed for the $1,800 amount due. Keiser pays $700 on the balance due on May 3. On June 1, Keiser receives a bill for the amount due, including interest at 1 percent per month on the unpaid balance as of May 3. Prepare the entries on KitchenMart books related to the transactions that occurred on April 2, May 3, and June 1.

(b) On July 4, Newark’s Restaurant accepts an American Express card for a $350 dinner bill. American Express charges a 4 percent service fee. On July 10, American Express pays Newark $336. Prepare the entries on Newark’s books related to the transactions.