restaurants do a large volume of business by credit and debit cards. suppose chocolate passion restaurant…

restaurants do a large volume of business by credit and debit cards. suppose chocolate passion restaurant had these transactions on january 28. requirement 1. suppose chocolate passions processor charges a 6% fee and deposits sales net of the fee. journalize these sale transactions for the restaurant (record debits first, then credits. select the explanation on the last line of the journal - entry table.) journalize the credit sales net of the fee, first. date accounts and explanation debit credit cash 19176 credit card expense 1224 sales revenue 20400 recorded credit card sales, net of fee. now journalize the debit card sales net of the fee. date accounts and explanation debit credit transactions national express credit card sales $20400 valuecard debit card sales 8000
Answer
Explanation:
Step1: Calculate credit - card fee for National Express
The credit - card sales amount is $20400 and the fee rate is 6%. So the credit - card fee is $20400\times0.06 = 1224$. The net amount received in cash is $20400−1224 = 19176$.
Step2: Journalize credit card sales
Debit Cash for the net amount received ($19176), debit Credit Card Expense for the fee amount ($1224), and credit Sales Revenue for the total sales amount ($20400).
Step3: Calculate debit - card fee for ValueCard
The ValueCard debit - card sales amount is $8000. The debit - card fee is $8000\times0.06=480$. The net amount received in cash is $8000 - 480=7520$.
Step4: Journalize debit card sales
Debit Cash for $7520, debit Credit Card Expense for $480, and credit Sales Revenue for $8000.
| Date | Accounts and Explanation | Debit | Credit |
|---|---|---|---|
| Jan 28 | Cash | 7520 | |
| Credit Card Expense | 480 | ||
| Sales Revenue | 8000 | ||
| (Recorded debit card sales net of fee) |
Answer:
| Date | Accounts and Explanation | Debit | Credit |
|---|---|---|---|
| Jan 28 | Cash | 7520 | |
| Credit Card Expense | 480 | ||
| Sales Revenue | 8000 | ||
| (Recorded debit card sales net of fee) |