Presented below are two independent situations. 1. On March 15, 50 customers used debit cards to purchase
Question:
Presented below are two independent situations.
1. On March 15, 50 customers used debit cards to purchase merchandise for a total of $8,740 from SoccerMax. SoccerMax pays a $1.25 debit card fee for each transaction.
2. On June 21, Coral Creations Gallery sells a painting to Constance Furrow for $1,500. Constance uses her Visa bank credit card to pay for the purchase. The bank charges Coral Creations a 2.0% fee for all credit card transactions. On July 17, Constance receives her Visa bill and pays for this purchase.
Instructions
a. Prepare SoccerMax’s journal entries for the transactions in part (1).
b. Prepare Coral Creations’ journal entries for the transactions in part (2).
Step by Step Answer:
Accounting Principles Volume 1
ISBN: 9781119786818
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak