On April 2, Jennifer Elston uses her Target RedCard to purchase merchandise from a Target store for $1,500. On May 1, Elston is billed for the $1,500 amount due. Elston pays $500 on the balance due on May 3. Elston receives a bill dated June 1 for the amount due, including interest at 1.0% per month on the unpaid balance as of May 3. Prepare the entries on Target’s books related to the transactions that occurred on April 2, May 3, and June 1. On July 4, Spangler’s Restaurant accepts a Visa card for a $200 dinner bill. Visa charges a 2% service fee. Prepare the entry on Spangler’s books related to this transaction.

On April 2, Jennifer Elston uses her Target RedCard to purchase merchandise from a Target store for $1,500. On May 1, Elston is billed for the $1,500 amount due. Elston pays $500 on the balance due on May 3. Elston receives a bill dated June 1 for the amount due, including interest at 1.0% per month on the unpaid balance as of May 3. Prepare the entries on Target’s books related to the transactions that occurred on April 2, May 3, and June 1. On July 4, Spangler’s Restaurant accepts a Visa card for a $200 dinner bill. Visa charges a 2% service fee. Prepare the entry on Spangler’s books related to this transaction.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4Q: American Signs allows customers to pay with their Jones credit card and cash. Jones charges American...

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