Assume that a retailer has made sales of $1,000 (the goods cost the retailer $600) for...

  

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Assume that a retailer has made sales of $1,000 (the goods cost the retailer $600) for which VISA cards were accepted and the service charge is 3% of sales. VISA sales are treated as cash sales because the cash will be deposited the next day. The retailer deposits the credit card sales invoices in its VISA checking account at a bank just as it deposits checks in its regular checking account. The entry to record this deposit is: Assume that a restaurant accepts American Express and will be paid directly by them in 5 days. The invoices amounting to $1,400 at the end of a day for the total credit card sales to American Express. American Express charges the restaurant a 5% service charge on the total American express sales Recored the entry for both the sale and the 5 days later: Assume that a retailer has made sales of $1,000 (the goods cost the retailer $600) for which VISA cards were accepted and the service charge is 3% of sales. VISA sales are treated as cash sales because the cash will be deposited the next day. The retailer deposits the credit card sales invoices in its VISA checking account at a bank just as it deposits checks in its regular checking account. The entry to record this deposit is: Assume that a restaurant accepts American Express and will be paid directly by them in 5 days. The invoices amounting to $1,400 at the end of a day for the total credit card sales to American Express. American Express charges the restaurant a 5% service charge on the total American express sales Recored the entry for both the sale and the 5 days later: