Done ?edugen.wileyplus.com WileyPLUS Presented below are two independent situati
ID: 2405866 • Letter: D
Question
Done ?edugen.wileyplus.com WileyPLUS Presented below are two independent situations On April 2, Jennifer Elston uses her CPenney Company credit card to dy purchase merchandise from a DCPenney store for $1,300. On May 1 Eston is billed for the $1,300 amount due. Eiston pays $s00 on the balance due on May 3. On June 1, Elston receives a bill for the amount due, including interest at 3.0% per month on the upad balance as of May 3. Prepare the entries on 3CPenney Ca.s books related to the transactions that occurred on April 2, May 3, and June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually,. Record journal entries in the order On July 4, Spangler's Restaurant accepts a Visa card for a $300 dinner bill. Visa charges a 4% service fee. Prepare the entry on Spengler's books indented when amount is entered. Do not indent manually.)Explanation / Answer
(a)
Journal Entries
Date
General Journal
Debit
Credit
2-Apr
Merchandise Inventory
$ 1,300.00
Credit card Dues
$ 1,300.00
(purchases made against credit card)
3-May
Credit card Dues
$ 500.00
Cash
$ 500.00
(payment for credit card dues)
1-Jun
Interest Expenses
$ 24.00
Credit card Dues
$ 24.00
(interest due on credit card late payment)
(b)
4-Jul
Cash
$ 288.00
Debit card Charges
$ 12.00
Service Revenue
$ 300.00
(charges of debit card paid and Revenue earned)
(a)
Journal Entries
Date
General Journal
Debit
Credit
2-Apr
Merchandise Inventory
$ 1,300.00
Credit card Dues
$ 1,300.00
(purchases made against credit card)
3-May
Credit card Dues
$ 500.00
Cash
$ 500.00
(payment for credit card dues)
1-Jun
Interest Expenses
$ 24.00
Credit card Dues
$ 24.00
(interest due on credit card late payment)
(b)
4-Jul
Cash
$ 288.00
Debit card Charges
$ 12.00
Service Revenue
$ 300.00
(charges of debit card paid and Revenue earned)
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