Carfox Auto Parts allows customers to pay for merchandise with cash, debit cards, bank credit cards, or a Carfox credit card. The bank charges Carfox $1.00 for each debit card sale and a 4% fee for bank credit card sales. On September 25 a customer makes a $1,200 purchase from Carfox using her debit card. Required: a) Prepare Carfox's journal entry to record this transaction. b) Assume instead the customer pays for her purchase using her MasterCard. Record the transaction. c) Assume instead the customer uses her Çarfox store credit card. Record the transaction.
Carfox Auto Parts allows customers to pay for merchandise with cash, debit cards, bank credit cards, or a Carfox credit card. The bank charges Carfox $1.00 for each debit card sale and a 4% fee for bank credit card sales. On September 25 a customer makes a $1,200 purchase from Carfox using her debit card. Required: a) Prepare Carfox's journal entry to record this transaction. b) Assume instead the customer pays for her purchase using her MasterCard. Record the transaction. c) Assume instead the customer uses her Çarfox store credit card. Record the transaction.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Carfox Auto Parts allows customers to pay for merchandise with cash, debit cards,
bank credit cards, or a Carfox credit card. The bank charges Carfox $1.00 for each
debit card sale and a 4% fee for bank credit card sales. On September 25 a customer
makes a $1,200 purchase from Carfox using her debit card.
Required:
a)
Prepare Carfox's journal entry to record this transaction.
b) Assume instead the customer pays for her purchase using her MasterCard.
Record the transaction.
c) Assume instead the customer uses her Carfox store credit card. Record the
transaction.
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