Credit Card Sales Historically, 60 percent of the customer bills at the Andrews’ Supper Club have been paid with cash or check. and 40 percent have…
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Credit Card Sales Historically, 60 percent of the customer bills at the Andrews’ Supper Club have been paid with cash or check. and 40 percent have been paid using either the GreatAmerican Bank Card or the United Merchants Card. Andrews pays a five percent fee with both cards. Great American Bank deposits cash in Andrews‘ checking account when the creditcard sales slips are deposited. United Merchants makes an electronic funds transfer three days after the sales slips are mailed. Preparejournal entries to record the following: Round to the nearest dollar. a. Sales for Sepoember 10 were as follows: Cash and checks $11340Great American Bank Card (Deposited at the end ofthe day] 500United Merchants Card [Mailed at the end of the day} 300 $2,140 b. On September 13, Andrews received an electronic funds transfer from United Mercha ms for the September 10 sales
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