In: Accounting
Question Journalizing credit card sales 2018
Sep. 1 Recorded National Express credit card sales for $96,000, net of processor fee of 1%. Ignore Cost of Goods Sold.
15 Recorded ValueMax credit card sales of $80,000. Processor charges a 1.5% fee. ValueMax charges the fee at the end of the month, therefore Marathon uses the gross method for these credit card sales. Ignore Cost of Goods Sold.
30 ValueMax collected the fees for the month of September. Assume the
September 15 transaction is the only ValueMax credit card sale. Journalize all entries required for Marathon Running Shoes.
Step 1: Definition of credit card
A credit card is a particular type of card that facilities customers to buy goods on credit.
Step 2: Journal entries for credit card sale
Date |
Particulars |
Debit |
Credit |
2018 |
|
|
|
September 1 |
Cash |
$95,040 |
|
|
Credit Card Expense |
$960 |
|
|
Sales Revenue |
|
$96,000 |
|
(Being entry of the credit card sale) |
|
|
|
|
|
|
September 15 |
Cash |
$96,000 |
|
|
Sales Revenue |
|
$96,000 |
|
(Being entry of the credit card sale) |
|
|
|
|
|
|
September 30 |
Credit Card Expense |
$960 |
|
|
Cash |
|
$960 |
|
(Being entry for the payment of processing fee) |
|
|
The credit card expense is $960.