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Recording credit card and debit card sales

Restaurants do a large volume of business with credit and debit cards. Suppose Summer,

Sand, and Castles Resort restaurant had these transactions on January 28, 2018:

National Express credit card sales $ 10,800

ValueCard debit card sales 10,000

Requirements

1. Suppose Summer, Sand, and Castles Resort’s processor charges a 2% fee anddeposits sales net of the fee. Journalize these sales transactions for the restaurant.

2. Suppose Summer, Sand, and Castles Resort’s processor charges a 2% fee anddeposits sales using the gross method. Journalize these sales transactions for therestaurant.

Short Answer

Expert verified

Bank account debited with $20,384.

Step by step solution

01

Definition of credit card

A credit card is a card that allows users to purchase goods on credit.

02

Using the net method

The net method is a method to record the revenue of the credit card sale in which total sale less prescribing fees equals cash.

Date

Particulars

Debit

Credit

1.

Bank

$20,384

Credit Card Expense

$416

Sales

$20,800

(To record credit card sales)

03

Using the gross method

The gross method is a method in which total sale is directly deposited within a few days. The amount to prescribed fees is deducted at the end of the month.

Date

Particulars

Debit

Credit

2.

Bank

$20,800

Sales

$20,800

(To record the credit card sales)

Credit Card Expenses

$416

Bank

$416

(Payment of credit card expenses)

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