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Leslie and Ben run a dry cleaners together, called Pawny Cleaners
Leslie and Ben run a dry cleaners together, called Pawny Cleaners. Their customers can pay by cash, debit or credit card. For each debit transaction, they pay $0.15. For credit cards, they pay 4.0% of the total of credit card transactions. On November 6, 2019, Ben compiled the following summary for the work day.
total of Cash$720 and number fo transaction is 35
Total of Debit Card$4330 and number of transaction is 122
total of Credit Card$2400 and number of transaction is65
a) Record the journal entry for the day's sales ignoring cost of goods sold.
b) cash, Debit/ Credit Card Expense, and sales Revenue?
Expert Solution
Computation of Total of Debit/Credit Card Expenses:
Debit Card Expenses (122*$0.15) = $18.30
Credit Card Expenses (2,400*4%) = $96
Total of Debit/Credit Card Expenses = $18.30+$96 = $114.30
| Journal Entry: | |||
| Date | Account Titles and Explanation | Debit | Credit |
| Aug-22 | Cash | 7335.7 | |
| Debit/Credit Card Expenses | 114.30 | ||
| Service Revenue ($720+$4,330+$2,400) | 7450 | ||
| (To record days sales) | |||
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