Question

Required information Accounts receivable are amounts due from customers for credit sales. A subsidiary ledger lists amounts owed by each customer. Credit sales arise from at least two sources: (1) sales on credit and (2) store credit card sales. Sales on credit refers to a company's granting credit directly to customers. Store credit card sales involve customers' use of store credit cards. Messing Company has their own credit card and makes a credit sale on February 1 to one of its customers for $5,000. Prepare the February 1 journal entry for Messing Company by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns

Answer 1

Answer:

Messing company Journal entries for Store Credit Card usage for a Customer

Explanation:

The Journal entries required includes

a. Recognition of the Bank credit advanced via usage of Credit Card (Liability)

b. Recognition of the Customer Account funded by this Credit line (Accounts receivable)

c. Recognition of the Sales created by this credit utilization

Kindly refer to attachment for detailed Journal entries