8.8 revised
Cclegg00
exercise_8-8.docExercise 8-8
Presented below are two independent situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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On April 2, Julie Keiser uses her JCPenney Company credit card to purchase merchandise from a JCPenney store for $1,500. On May 1, Keiser is billed for the $1,500 amount due. Keiser pays $900 on the balance due on May 3. On June 1, Keiser receives a bill for the amount due, including interest at 1% per month on the unpaid balance as of May 3. Prepare the entries on JCPenney Co.’s books related to the transactions that occurred on April 2, May 3, and June 1. |
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(b) |
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On July 4, Avalon Restaurant accepts a Visa card for a $200 dinner bill. Visa charges a 3% service fee. Prepare the entry on Avalon’s books related to this transaction. |
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Account Titles and Explanation |
Debit |
Credit |
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(a) |
Apr. 2 |
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May 3 |
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June 1 |
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(b) |
July 4 |
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