Prepare the company journal entry to record credit card

Assignment Help Accounting Basics
Reference no: EM13137157

A company allows its customers to use bank credit cards to charge purchases. When customers use the credit cards, the net amount is deposited in the company's checking account. The company also is charged a 2.5% service charge for these credit card sales. Assume that on April 13, the company sold $25,000 worth of merchandise to customers who used credit cards. Prepare the company's journal entry to record the credit card sales for April 13 assuming the company deposited the receipts that same day.

Reference no: EM13137157

Questions Cloud

Johnson & williams : Johnson & Williams have approached you to obtain funding for the proposed expansion of their manufacturing capacity and product range.
Us income tax versus uk vat tax : Compare the current Federal income tax structure of the U.S. with that of the VAT national tax implemented by the United Kingdom.
Explain employing the ideal gas model : Employing the ideal gas model, determine the change in specific entropy between the indicated states, in Btu/lbmol?ºR. Solve 2 ways: Use the appropriate ideal gas table AND also by using a constant specific heat value.
Importance of fiscal federalism : According to Musgrave and Oats, fiscal federalism is the division of public sector functions and finances among different tiers of government.
Prepare the company journal entry to record credit card : Prepare the company's journal entry to record the credit card sales for April 13 assuming the company deposited the receipts that same day.
Determining the total amount of the credit : What is the amount of the low-income housing credit that Chris may claim in 2005 (assuming a rate of 7.96%)? What is the total amount of the credit that Chris may claim as a result of the $800,000 expenditure?
What is the theoretical yield of aspirin : What is the theoretical yield of aspirin if 175 kg of salicylic acid is allowed to react with 118 kg of acetic anhydride?
Distinction between leadership and management : Leadership can be classified as a process of setting a new direction for a group or organization. Management; directing and controlling according to established principles.
Compressed steadily as well adiabatically in a reversible : Refrigerant R-134a is compressed steadily and adiabatically in a reversible compressor. The volume flow rate entering the compressor is 800 ft3/min.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Calculation of residual income and return on investments

If Charming Confections Company charges each division 12% for capital employed, compute residual income for the Peanut and Plain divisions. Compute the ROI for each division.

  Prepare an rea diagram for freds train

Fred deals with more than one supplier and often places orders for multiple items at the same time. Fred takes inventory and places orders every Monday.

  Finding out the depreciation expense

Heathlands will use a three-year straight-line method. In the 2005 consolidated income statement, the depreciation expense:

  Determining the amount of ordinary income

The corporation elected S corporation status at the starting of 2011. On February 13, 2012, the property was sold for $40,000, payable in 4 yearly instalments of $10,000 plus interest. What is the amount of ordinary income to be reported from the s..

  Formulating linear program

A garden store prepares various grades of pine bark for mulch: nuggets, mini nuggets, and chips.The following table gives information regarding the different requirements.

  Contracts for the international sale of goods

What is the Conventions on Contracts for the International Sale of Goods (CSIG)? What is the Uniform Commercial Code (UCC)? In what ways is the coverage of the CSIG and the UCC similar or different? Explain your answer in 200 words

  Consolidated income statement

For consolidation purposes, does the direction of the transfers (upstream or downstream) affect the balances to be reported here? Prepare a consolidated income statement for the year ending December 31, 2004.

  Compute the issue price of each of the following bonds

$10,000,000 face value, serial bonds repayable in 40 equal semi-annual installments of $500,000, which includes coupon payments and repayment of principal, for 20 years, priced on the market to yield 6% compounded semi-annually. Round your answer ..

  What was the balance in the cash account

On October 31, a company's Cash account had a normal balance of $7,000. During October, the account was debited for a total of $4,250 and credited for a total of $5,340. What was the balance in the Cash account at the beginning of October?

  Profit-charges and break-even

Profit, charges, and break-even without and with overhead. A number of years ago, at the request of its employees, Jack Winslow and Company converted one of its small rooms to house a small pharmacy for its employees in which they can buy a few po..

  Describe three kinds of transactions

Describe three kinds of transactions that will result in paid-in or permanent capital in excess of legal or stated capital.

  Pushdown accounting

Refers to the establishment of a new accounting and reporting basis in an acquired company's parent's financial statements. Is where the purchase price is "pushed down" on the acquirer's financial statements and used to restate the carrying value of..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd