Phoenix Restaurants accepts credit and debit cards as forms of payment. Assume Phoenix had $12,000 of credit and debit card sales on June 30, 2017.

Question Phoenix Restaurants accepts credit and debit cards as forms of payment. Assume Phoenix had $12,000 of credit and debit card sales on June 30, 2017.

9. Suppose Phoenix’s processor charges a 2% fee and deposits sales net of the fee. Journalize the sale transaction for the restaurant.

10. Suppose Phoenix’s processor charges a 2% fee and deposits sales using the gross method. Journalize the sale transaction for the restaurant.

Solutions

Expert Solution

Step 1: Definition of credit card

A credit card is a special type of card that facilitates customers to purchase on credit.

Step 2: Journal entries

Date Particulars Debit Credit

June 30, 2017 Cash $11,760

Credit Card Expense $240

Sales $12,000

(Being entry to record sale on credit card)

June 30, 2017 Cash $12,000

Sales $12,000

(To record the sales receipt)

June 30, 2017 Credit Card Expense $240

Cash $240

(Entry for the payment of credit card expense)

The cash account is debited with $12,000 and the sales account is credited with $12,000.

Sahil Dangi answered 1 year ago

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