Question

On april 2, jennifer elston uses her jcpenney company credit card to purchase merchandise from a jcpenney store for $1,200. on may 1, elston is billed for the $1,200 amount due. elston pays $600 on the balance due on may 3. on june 1, elston receives a bill for the amount due, including interest at 3.0% per month on the unpaid balance as of may 3. prepare

Answer 1

The question is missing some parts. But the problem here is asking the journal entries for April 2, May 3, and June 1.

 

Apr 2:

Debit Accounts Receivable 1,200

Credit Sales Revenue 1,200

 

May 3:

Debit Cash 600

Credit Accounts Receivable 600

 

June 1

Debit Accounts Receivable 18

Credit Interest Revenue 18

Computation: 1200 – 600 = 600 * 0.03