On September 5, Maria Smith, owner of Super Gym Personal Service, provided personal training services to customers for cash of $3,500. Services of $9,000 were billed to corporate clients, terms 2/10, n/30. In the gym Maria uses a Square card reader that attaches to her iPhone, and other services totalling $18,000 were recorded on September 20 for customers using MasterCard (assume a 3.25% fee). On September 25, sales of $7,000 were made to debit card customers, also using the Square reader on her phone. The bank charges Maria a flat fee of 0.75% on all debit card transactions.

Required:

Prepare journal entries for each of the transactions described.

Analysis Component: Identify the advantages and disadvantages of each type of sale: cash sale, credit sale, credit card sale, or debit card sale. Explain why Maria would likely accept all these types of payment.

Answer rating: 100% (QA)

Journal Entries Date Particulars Debit Credit Sep 5 Cash 3500 Service Revenue 3500 Cash received for service provided Sep 5 Accounts Receivable 9000 S... View the full answer