Question

Paci Restaurants accepts credit and debit cards as forms of payment. Assume Paci had $14, 000 of credit and debit card sales on April 30, 2015.1. Suppose Paci's processor charges a 3​% fee and deposits sales net of the fee. Journalize the sale transaction for the restaurant. 2. Suppose Paci​'s processor charges a 3​% fee and deposits sales using the gross method. Journalize the sale transaction for the restaurant.

Answer 1

Answer:

1) assuming that the credit card company's payments are immediate (1 business day)

April 30,2015, net credit and debit card sales

Dr Cash 13,580

    Cr Sales revenue 13,580

2) assuming that the credit card company's payments are immediate (1 business day)

April 30,2015, gross credit and debit card sales

Dr Cash 13,580

Dr Credit card fees 420

    Cr Sales revenue 14,000