In: Accounting
how would I post this to question to a general journal; June 25: Collection from credit-card companies Received a check from the credit card company (American Credit Card Company) for the June 17 balance of its account, minus the 4% collection fee. Click on Journals/Ledgers/Statement, select General Ledger, and click on Ledger Card. From the textbox select the Accounts Receivable – Credit Card Companies account, then click on Show Ledger Card. Examine the account to determine the balance on June 17. At the invoice prompt enter CC780. (Be sure to round all amounts to the nearest cent.)The cash amount would be 10313.73 Accounts Rec- 9158.08.08 Fees- 412.55 now I understand the fees have to be debit but from there I am confused
Ans:
First look at some basic rules of accounting:
On june 2017; The balance of account receivable should be $10,313.73, out of which Cash is Received $9,158.08 and Fees Deducted by Credit card company is $412.55
Journal Entry to post the above transaction :
Date | Account Title | Debit | Credit |
June 17 | Cash | 9,158.08 | |
Fees (Expense) | 412.55 | ||
Accounts Receivable – Credit Card Companies account | 10,313.73 |
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