Chapter 8, Problem S8.6SE

Recording credit card and debit card sales

Learning Objective 5

Restaurants do a large volume of business by credit and debit cards. Suppose Summer, Sand, and Castles Resort restaurant had these transactions on January 28, 2018:

National Express credit card sales $10,800

ValueCard debit card sales 10,000

Requirements

1. Suppose Summer, Sand, and Castles Resorts processor charges a 2% fee and deposits sales net of the fee. Journalize these sales transactions for the restaurant.
2. Suppose Summer, Sand, and Castles Resort’s processor charges a 2% fee and deposits sales using the gross method. Journalize these sales transactions for the restaurant.