Question

why does a bank credit card show not show as accounts receivable and is showing in...

why does a bank credit card show not show as accounts receivable and is showing in Cash and Cash equivalents

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

To outline the accounting entries for the utilization of bank credit cards, (for example, VISA or MasterCard), expect that a retailer has made sales of $ 1,000 for which VISA cards were acknowledged and the service charge is 3% of sales. VISA sales are dealt with as money sales on the grounds that the money will be saved the following day. The retailer stores the credit card sales solicitations in its VISA financial records at a bank similarly as it stores checks in its standard financial records. The passage to record this store is.

Cash Dr – 970

Credit card expense Dr – 30

Sales Cr - 1000

--------------------------------------------------------------------------------------------------------------------------

Feel free to comment if you need further assistance J

Pls rate this answer if you found it useful.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Why is it important to reconcile bank accounts and credit card accounts on a regular basis?
Why is it important to reconcile bank accounts and credit card accounts on a regular basis?
Why don't you just show the net balance of accounts receivable? Why bother showing the deduction...
Why don't you just show the net balance of accounts receivable? Why bother showing the deduction of the allowance account on the balance sheet?
A retailer that makes credit card sales: Select one: Absorbs any losses on uncollectible credit card...
A retailer that makes credit card sales: Select one: Absorbs any losses on uncollectible credit card accounts Records such sales as a credit to Cash or Accounts Receivable, a debit to Credit Card Fees Expense, and a credit to Sales Revenue Is charged a fee ranging from 1% to 5% of the amount of each credit card sale On which financial statement and at what amount are accounts receivable reported? Select one: Income statement at the amount written off Balance...
Name: Problem 6-1SA The Country Kitchen accepts three credit cards: (1) their own credit card; (2)...
Name: Problem 6-1SA The Country Kitchen accepts three credit cards: (1) their own credit card; (2) the Local Merchant card, which charges a 3% fee and must be mailed to the company for payment; and (3) the North East Bank Card, which charges a 5% fee and is accepted by the bank for deposit. All sales are subject to 5% sales tax. Prepare the general journal entries to record the following transactions. Post to the accounts receivable control account (ledger),...
Given the following information: Accounts Receivable at 1 July 2017    30,000 Accounts Receivable at 30...
Given the following information: Accounts Receivable at 1 July 2017    30,000 Accounts Receivable at 30 June 2018 27,000 Receipts on account for the year to 30 June 2018 98,000 Calculate Credit Sales for the year to 30 June 2018: Do not use any punctuation or symbols in the answer. Answer: Part B Select the most appropriate account to be debited for the following transactions. Note that an account may be used more than once or not at all. Paid...
How does a debit to Cash and credit to Accounts Receivable affect the accounting equation? A....
How does a debit to Cash and credit to Accounts Receivable affect the accounting equation? A. An increase in Assets and another increase in Assets B. Increase in Assets and an increase in Stockholders' Equity C. No net change. Assets are both increased and decreased D. An increase to Assets and an increase in Liabilities
Why is Bank of America offering a new premium credit card for its high-end customers? explain
Why is Bank of America offering a new premium credit card for its high-end customers? explain
The following information is available about a company's accounts receivable: June 30 - Accounts receivable balance:...
The following information is available about a company's accounts receivable: June 30 - Accounts receivable balance: $50,000. Nov 15 - Received Cash of $40,000, and wrote off the remaining balance. Dec 15 - Recovered the amount written off on Nov 15. Under the direct method, the entries to record the cash recovered on Dec 15 are: Select one: A. 1. Debit Accounts Receivable, Credit Bad Debt Expense for $10,000; 2. Debit Cash, Credit Accounts Receivable for $10,000. B. 1. Credit...
The following information is available about a company's accounts receivable: June 30 - Accounts receivable balance:...
The following information is available about a company's accounts receivable: June 30 - Accounts receivable balance: $50,000. Nov 15 - Received Cash of $40,000, and wrote off the remaining balance. Dec 15 - Recovered the amount written off on Nov 15. Under the direct method, the entries to record the cash recovered on Dec 15 are: Select one: A. 1. Debit Accounts Receivable, Credit Bad Debt Expense for $10,000; 2. Debit Cash, Credit Accounts Receivable for $10,000. B. 1. Credit...
7.30 Credit card fees. A bank wonders whether omitting the annual credit card fee for customers...
7.30 Credit card fees. A bank wonders whether omitting the annual credit card fee for customers who charge at least $5000 in a year would increase the amount charged on its credit card. The bank makes this offer to an SRS of 125 of its existing credit card customers. It then compares how much these customers charge this year with the amount that they charged last year. The mean is $685, and the standard deviation is $1128. (a) Is there...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT