maple woodworking accepts credit cards at its store. maples credit card processor charges a fee of 2% of the…

maple woodworking accepts credit cards at its store. maples credit card processor charges a fee of 2% of the total amount of any credit sale. assume that ralph stone purchases $9,000 of custom furniture and pays with a visa card. make the entry that maple would make to record the sale to stone. (you do not need to make the cost of goods sold entry in this exercise.) (record debits first, then credits. exclude explanations from any journal entries. assume that since this is a custom order, no refunds or returns are allowed.)

maple woodworking accepts credit cards at its store. maples credit card processor charges a fee of 2% of the total amount of any credit sale. assume that ralph stone purchases $9,000 of custom furniture and pays with a visa card. make the entry that maple would make to record the sale to stone. (you do not need to make the cost of goods sold entry in this exercise.) (record debits first, then credits. exclude explanations from any journal entries. assume that since this is a custom order, no refunds or returns are allowed.)

Answer

Explanation:

Step1: Calculate the credit card fee

The credit card fee is (2%) of the sale amount. The sale amount is ($9,000). So the fee (= 9000\times0.02=$180)

Step2: Calculate the amount received from the credit - card processor

The amount received (=) Sale amount - Credit card fee. So, (9000 - 180=$8820)

Step3: Record the journal entry

When a credit - card sale is made, the business debits the amount it will receive (Cash or Cash - like account from the processor) and the credit - card expense, and credits Sales Revenue.

The journal entry is:

Accounts Debit Credit
Cash 8820
Credit Card Expense 180
Sales Revenue 9000

Answer:

Accounts Debit Credit
Cash 8820
Credit Card Expense 180
Sales Revenue 9000