1) Explain how a purchase made with a store credit card isdifferent from a purchase made with a bank credit card.
2) How are a bank credit card and a bank debit card similar? Howare they different?
2) How are a bank credit card and a bank debit card similar? Howare they different?
Related questions
Please answer.
Credit Card Sales Historically, 60 percent of the customer bills at the Andrews' Supper Club have been paid with cash or check, and 40 percent have been paid using either the Great American Bank Card or the United Merchants Card. Andrews pays a 4% fee with both cards. Great American Bank deposits cash in Andrews' checking account when the credit card sales slips are deposited. United Merchants makes an electronic funds transfer three days after the sales slips are mailed. Prepare journal entries to record the following:
Round to the nearest dollar.
| a. | Sales for September 10 were as follows: | |
| Cash and checks | $43,500 | |
| Great American Bank Card (Deposited at the end of the day) | 18,270 | |
| United Merchants Card (Mailed at the end of the day) | 16,530 | |
| $78,300 | ||
| b. | On September 13, Andrews received an electronic funds transfer from | |
| United Merchants for the September 10 sales. | ||
a.
| General Journal | |||
|---|---|---|---|
| Date | Description | Debit | Credit |
| Sept.10 | Cash | $Answer | $Answer |
| AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue | Answer | Answer | |
| Credit Card Fee Expense | Answer | Answer | |
| AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue | Answer | Answer | |
| To record cash and credit card sales. | |||
b.
| General Journal | |||
|---|---|---|---|
| Date | Description | Debit | Credit |
| Sept.13 | AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue | $Answer | $Answer |
| AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue | Answer | Answer | |
| To record receipt of check from United Merchants. | |||
Please answer
Credit Card Sales Ruth Anne's Fabrics accepts cash, personal checks, and two credit cards when customers buy merchandise. With the Great American Bank Card, Ruth Anne's Fabrics receives an immediate deposit in its checking account when credit card sales slips are deposited at the bank. The bank charges a 4% fee. With the United Merchants Card, Ruth Anne's Fabrics mails the credit card sales slips to United Merchants' regional processing center each day. United Merchants accumulates these slips for three days and then mails a check to Ruth Anne's Fabrics, after deducting a 3% fee. Prepare journal entries to record the following:
Round to the nearest dollar.
| a. | Sales for March 15 were as follows: | |
| Cash and checks | $1,650 | |
| Great American Bank Card (Deposited at the end of the day) | 2,000 | |
| United Merchants Card (Mailed at the end of the day) | 1,500 | |
| $5,150 | ||
| b. | Received a check from United Merchants on March 20 for: | $5,888 |
a.
| General Journal | |||
|---|---|---|---|
| Date | Description | Debit | Credit |
| Mar.15 | Cash | $Answer Incorrect | $Answer Correct |
| AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue Correct | Answer Incorrect | Answer Correct | |
| Credit Card Fee Expense | Answer Correct | Answer Correct | |
| AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue Correct | Answer Correct | Answer Correct | |
| To record cash and credit card sales. | |||
b.
| General Journal | |||
|---|---|---|---|
| Date | Description | Debit | Credit |
| Mar.20 | AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue Correct | $Answer Correct | $Answer Correct |
| AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue Correct | Answer Correct | Answer Correct | |
| To record receipt of check from United Merchants. | |||
Please answer.
Credit Card Sales The Tin Roof accepts cash, personal checks, and two credit cards when customers buy merchandise. With the Great American Bank Card, The Tin Roof receives an immediate deposit in its checking account when credit card sales slips are deposited at the bank. The bank charges a 4% fee. With the United Merchants Card, The Tin Roof mails the credit card sales slips to United Merchants' regional processing center each day. United Merchants accumulates these slips for three days and then mails a check to The Tin Roof, after deducting a 3% fee. Prepare journal entries to record the following:
| a. | Sales for March 15 were as follows: | |
| Cash and checks | $1,000 | |
| Great American Bank Card (Deposited at the end of the day) | 1,200 | |
| United Merchants Card (Mailed at the end of the day) | 800 | |
| $3,000 | ||
| b. | Received a check from United Merchants on March 20 for: | $5,078 |
a.
| General Journal | |||
|---|---|---|---|
| Date | Description | Debit | Credit |
| Mar.15 | Cash | $Answer Incorrect | $Answer Correct |
| Accounts Receivable - United Merchants | Answer Incorrect | Answer Correct | |
| AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue Correct | Answer Incorrect | Answer Correct | |
| AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue Correct | Answer Correct | Answer Incorrect | |
| To record cash and credit card sales. | |||
b.
| General Journal | |||
|---|---|---|---|
| Date | Description | Debit | Credit |
| Mar.20 | AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue Correct | $Answer Incorrect | $Answer Correct |
| AnswerCashAccounts Receivable - United MerchantsCredit Card Fee ExpenseSales Revenue Correct | Answer Correct | Answer Correct | |
| To record receipt of check from United Merchants. | |||
