Restaurants do a large volume of business by credit and debit cards. Suppose Cityside Collection restaurant had these transactions on January 28, 2024: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Suppose Cityside Collection's processor charges a 4% fee and deposits sales net of the fee. Journalize these sale transactions for the restaurant. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Journalize the credit sales net of the fee, first. Date Accounts and Explanation Requirements Debit Print 1. Suppose Cityside Collection's processor charges a 4% fee and deposits sales net of the fee. Journalize these sales transactions for the restaurant. 2. Suppose Cityside Collection's processor charges a 4% fee and deposits sales using the gross method. Journalize these sales transactions for the restaurant Credit Done - X Data table National Express credit card sales ValueCard debit card sales Print Done $ 11,200 7,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**Understanding Restaurant Credit Card Transactions**

Restaurants handle substantial volumes of credit and debit card transactions. For example, on January 28, 2024, Cityside Collection restaurant processed several transactions. 

### Exercise Overview

**Requirement 1:**
Cityside Collection's processor charges a 4% fee and deposits sales net of the fee. You are tasked to journalize these sales transactions. Begin by recording debits, then credits, and ensure to select the explanation on the last line of the journal entry table.

#### Journal Entry Table

- **Date** 
- **Accounts and Explanation**
- **Debit**
- **Credit**

This table is intended for you to fill in the necessary information regarding the transaction.

### Data Table

The data table contains the following information:
- **National Express credit card sales:** $11,200
- **ValueCard debit card sales:** $7,000

These figures need to be journalized according to the requirements stated above.

### Detailed Instructions

1. **Net Method:**
   - Journalize the sales transactions for Cityside Collection using the net method, where the processor charges a 4% fee and deposits the remaining amount after deducting the fee.

2. **Gross Method:**
   - Journalize using the gross method, recognizing the total sales before deducting the processor's 4% fee.

By completing these steps, you will learn how to record credit card transactions accurately in the restaurant business context.
Transcribed Image Text:**Understanding Restaurant Credit Card Transactions** Restaurants handle substantial volumes of credit and debit card transactions. For example, on January 28, 2024, Cityside Collection restaurant processed several transactions. ### Exercise Overview **Requirement 1:** Cityside Collection's processor charges a 4% fee and deposits sales net of the fee. You are tasked to journalize these sales transactions. Begin by recording debits, then credits, and ensure to select the explanation on the last line of the journal entry table. #### Journal Entry Table - **Date** - **Accounts and Explanation** - **Debit** - **Credit** This table is intended for you to fill in the necessary information regarding the transaction. ### Data Table The data table contains the following information: - **National Express credit card sales:** $11,200 - **ValueCard debit card sales:** $7,000 These figures need to be journalized according to the requirements stated above. ### Detailed Instructions 1. **Net Method:** - Journalize the sales transactions for Cityside Collection using the net method, where the processor charges a 4% fee and deposits the remaining amount after deducting the fee. 2. **Gross Method:** - Journalize using the gross method, recognizing the total sales before deducting the processor's 4% fee. By completing these steps, you will learn how to record credit card transactions accurately in the restaurant business context.
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