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. Accounts receivable : Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods, and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business. To prepare: The journal entry in the books of Restaurant M to record the credit card sale.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 8.9E

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.

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods, and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

To prepare: The journal entry in the books of Restaurant M to record the credit card sale.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

On July 4, Sandhill’s Restaurant accepts a Visa card for a $160 dinner bill. Visa charges a 5% service fee.Prepare the entry on Sandhill’s books related to this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 4 eTextbook and Media

On July 4, Sheridan's Restaurant accepts a Visa card for a $450 dinner bill. Visa charges a 2% service fee.Prepare the entry on Sheridan’s books related to the transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 4 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title

On July 4, Kingbird Restaurant accepts a Visa card for a $200 dinner bill. Visa charges a 4% service fee. Prepare the entry on Kingbird books related to this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 4 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount