Question

Alpha Company sells goods to customers who use Worldwide Express nonbank credit cards. Credit card sales...

Alpha Company sells goods to customers who use Worldwide Express nonbank credit cards. Credit card sales on July 15, 2016 amounted to $25,000 and were subject to a 2.5% credit card company collection fee. Alpha Company collected payment from Worldwide Express on July 21. Use this information to prepare the General Journal entries (without explanation) for the July 15 sales & the July 21 collections. If no entry is required then write "No Entry Required."

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Answer #1

Date

General Journal

Debit

Credit

15-Jul

Accounts Receivables-Worldwide Express

$ 24,375.00

Credit card Expenses

$        625.00

            Sales Revenue

$ 25,000.00

(Credit card sales recorded)

21-Jul

Cash

$ 24,375.00

          Accounts Receivables-Worldwide Express

$ 24,375.00

(Received from credit card company)
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