Exercise 8-9 Colaw Stores accepts both its own and national credit cards. During

Question

Exercise 8-9

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

Journalize the transactions for Colaw Stores. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Jan. 15 Made Colaw credit card sales totaling $28,300. (There were no balances prior to January 15.) 20 Made Visa credit card sales (service charge fee 2%) totaling $5,200. Feb. 10 Collected $11,500 on Colaw credit card sales. 15 Added finance charges of 1.5% to Colaw credit card account balances.

Explanation / Answer

Date Accounting titles & Explanations Debit Credit 15-Jan Accounts receivable 28,300 sales 20-Jan Cash (5200*98%) 5096 Service charges (5200*2%) 104 sales 5,200 10-Feb Cash 11,500 Account receivable 11,500 15-Feb Accounts receivable 252 interest income (28300-11500)*1.5% 252

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