Exerclse $7-14$A $($Algo$)$ Recording Credit Card Sales LO $7-6$

Luna Company accepted credit cards in payment for $$7,400$ of services performed during July Year $1.$ The credit card company

charged Luna a $3\mathrm{.}75$ percent service fee; it paid Luna as soon as it received the invoices.

Requlred

a$.$ Prepare the general journal entry to record the service revenue.

o$.$ 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?

Complete this question by entering your answers in the tabs below.

Prepare the general journal entry to record the service revenue. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry

required" in the first account field. Round your answers to nearest whole dollar.$)$

Journal entry worksheet

A

Record service revenue on credit card payment and credit card expenses.

Note: Enter debits before credits.