Question

Journalize the following transactions for Stillwater Spa Consultants: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Oct. 1 Sold services for $260,000 to customers using debit cards. Assume the bank charges 0.5% for all debit card transactions.

7 Sold services to customers for $29,000 cash.

8 Recorded Visa credit card sales totalling $152,000. Visa applies fees of 2%.

10 Sold $108,000 of services to Edson Community Health Clinic, terms 2/15, n/30. 25 Collected the amount owing regarding the October 10 sale.

Answer 1

Solution:

Journal Entries - Stillwater Spa Consultants
Date	Particulars	Debit	Credit
1-Oct	Cash Dr	$258,700.00
	Debit card expense Dr ($260,000*0.5%)	$1,300.00
	To Sales revenue		$260,000.00
	(To record sales)
7-Oct	Cash Dr	$29,000.00
	To Sales revenue		$29,000.00
	(To record sales for cash)
8-Oct	Cash Dr	$148,960.00
	Credit card expense Dr ($152,000*2%)	$3,040.00
	To Sales revenue		$152,000.00
	(To record sales)
10-Oct	Accounts receivables Dr	$108,000.00
	To Sales revenue		$108,000.00
	(To record sales on account)
25-Oct	Cash Dr	$105,840.00
	Sales discount Dr	$2,160.00
	To Accounts receivables		$108,000.00
	(To record collection from customer and discount given)