Burtonville Stores accepts both its own and national credit cards. During the ye

Question

Burtonville Stores accepts both its own and national credit cards. During the year, the following selected summary transactions occurred.

Journalize the transactions for Burtonville Stores. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Jan. 15 Made Burtonville credit card sales totaling $22,100. (There were no balances prior to January 15.) 20 Made Visa credit card sales (service charge fee 3%) totaling $5,000. Feb. 10 Collected $10,400 on Burtonville credit card sales. 15 Added finance charges of 3% to Burtonville credit card account balances.

Explanation / Answer

A store's own credit card is treated as an accounts receivable, while bank cards are treated as cash.

Jan. 15 Made Burtonville credit card sales totaling $22,100
(There were no balances prior to January 15.)
Dr Accounts Receivable $22,100
Cr Sales

20 Made Visa credit card sales (service charge fee 3%) totaling $5,000.
5,000 x 3% = $150 credit card fees
Dr Cash 4,850
Dr Bank Card Fee Expense 150
Cr Sales 5,000

Feb. 10 Collected $10,400 on Topeka credit card sales.
Dr Cash 10400
Cr Accounts Receivable 10,400

15 Added finance charges of 3% to Topeka credit card balance.
8,000 x 3% = $240
Dr Accounts Receivable 240
Cr Interest Revenue 240

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