Question

Alpha Company sold goods to customers who used Under-the-Hill bank credit cards. Credit card sales on July 8, 2016 amounted to $12,000 and were subject to a 2.5% bank fee. Use this information to prepare the General Journal entry (without explanation) for July 8, 2016.

Answer 1

Answer:

Explanation:

The journal entry for July 8, 2016 is shown below:

Bank A/c Dr                       $11,700

Commission fee A/c $300 ($12,000 × 2.5%)

        To Sales A/c                    $12,000

Since the sales is recorded at $12,000 which includes commission fee of $300 ($12,000 × 2.5%) , the remaining balance i.e $11,700 ($12,000 - $300) would be debited to the bank account.