Peru Furniture City, Inc., sold $88,000 of furniture in May to customers who used their American...

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Peru Furniture City, Inc., sold $88,000 of furniture in May to customers who used their American Express Credit Cards. Such sales are subject to a 5% discount by American Express (a nonbank credit card). Prepare journal entries to record the sales and the subsequent receipt of cash from the credit card company. Date May 31 June 15 Date May 31 Description June 15 Use the same information as above, but assume the credit cards used were VISA cards (a bank credit card). Debit Description Credit Debit Credit Peru Furniture City, Inc., sold $88,000 of furniture in May to customers who used their American Express Credit Cards. Such sales are subject to a 5% discount by American Express (a nonbank credit card). Prepare journal entries to record the sales and the subsequent receipt of cash from the credit card company. Date May 31 June 15 Date May 31 Description June 15 Use the same information as above, but assume the credit cards used were VISA cards (a bank credit card). Debit Description Credit Debit Credit

Answer rating: 100% (QA)

Journal Entry It is a record of the business transactions in the accounting books of a bu... View the full answer