Credit card sales: Credit card is an electronic card, which allows the credit card holders to buy something on credit at convenience and without paying immediate cash. Businesses allow customers to buy its products through bank credit cards, such sales are termed as credit card sales. For such convenience, bank charges some percentage as service charge expense on the total value of goods, or services purchased on credit. Procedure for debiting and crediting an account in journal entry : Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited. Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited. To prepare: The journal entry in the books of Company T to record the interest revenue.

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Answer 1

Question

Chapter 8, Problem 3Q

To determine

Credit card sales:

Credit card is an electronic card, which allows the credit card holders to buy something on credit at convenience and without paying immediate cash.

Businesses allow customers to buy its products through bank credit cards, such sales are termed as credit card sales. For such convenience, bank charges some percentage as service charge expense on the total value of goods, or services purchased on credit.

Procedure for debiting and crediting an account in journal entry:

Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.

Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.

To prepare: The journal entry in the books of Company T to record the interest revenue.

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Answer 2

Question

Chapter 8, Problem 3Q

To determine

Credit card sales:

Credit card is an electronic card, which allows the credit card holders to buy something on credit at convenience and without paying immediate cash.

Businesses allow customers to buy its products through bank credit cards, such sales are termed as credit card sales. For such convenience, bank charges some percentage as service charge expense on the total value of goods, or services purchased on credit.

Procedure for debiting and crediting an account in journal entry:

Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.

Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.

To prepare: The journal entry in the books of Company T to record the interest revenue.

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Answer 3

Question

Chapter 8, Problem 3Q

To determine

Credit card sales:

Credit card is an electronic card, which allows the credit card holders to buy something on credit at convenience and without paying immediate cash.

Businesses allow customers to buy its products through bank credit cards, such sales are termed as credit card sales. For such convenience, bank charges some percentage as service charge expense on the total value of goods, or services purchased on credit.

Procedure for debiting and crediting an account in journal entry:

Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.

Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.

To prepare: The journal entry in the books of Company T to record the interest revenue.

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Answer 4

Question

Chapter 8, Problem 3Q

To determine

Credit card sales:

Credit card is an electronic card, which allows the credit card holders to buy something on credit at convenience and without paying immediate cash.

Businesses allow customers to buy its products through bank credit cards, such sales are termed as credit card sales. For such convenience, bank charges some percentage as service charge expense on the total value of goods, or services purchased on credit.

Procedure for debiting and crediting an account in journal entry:

Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.

Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.

To prepare: The journal entry in the books of Company T to record the interest revenue.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 3Q

To determine

Credit card sales:

Credit card is an electronic card, which allows the credit card holders to buy something on credit at convenience and without paying immediate cash.

Businesses allow customers to buy its products through bank credit cards, such sales are termed as credit card sales. For such convenience, bank charges some percentage as service charge expense on the total value of goods, or services purchased on credit.

Procedure for debiting and crediting an account in journal entry:

Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.

Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.

To prepare: The journal entry in the books of Company T to record the interest revenue.

Answer 6

Chapter 8, Problem 3Q

To determine

Credit card sales:

Credit card is an electronic card, which allows the credit card holders to buy something on credit at convenience and without paying immediate cash.

Businesses allow customers to buy its products through bank credit cards, such sales are termed as credit card sales. For such convenience, bank charges some percentage as service charge expense on the total value of goods, or services purchased on credit.

Procedure for debiting and crediting an account in journal entry:

Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.

Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.

To prepare: The journal entry in the books of Company T to record the interest revenue.

Answer 7

Chapter 8, Problem 3Q

To determine

Credit card sales:

Credit card is an electronic card, which allows the credit card holders to buy something on credit at convenience and without paying immediate cash.

Businesses allow customers to buy its products through bank credit cards, such sales are termed as credit card sales. For such convenience, bank charges some percentage as service charge expense on the total value of goods, or services purchased on credit.

Procedure for debiting and crediting an account in journal entry:

Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.

Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.

To prepare: The journal entry in the books of Company T to record the interest revenue.

Answer 8

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Answer 11

Ch. 8 - Prob. 1Q Ch. 8 - Prob. 2Q Ch. 8 - Prob. 3Q Ch. 8 - Prob. 4Q Ch. 8 - Prob. 5Q Ch. 8 - 6. Distinguish between the two bases that may be...Ch. 8 - Prob. 7Q Ch. 8 - Prob. 8Q Ch. 8 - Prob. 9Q Ch. 8 - Prob. 10Q

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