8. Crystal Products allows customers to use bank credit cards to charge purchase

Question

8. Crystal Products allows customers to use bank credit cards to charge purchases. The bank used by Crystal Products processes all bank credit cards in exchange for a 3% processing fee. All credit card receipts deposited are credited to the company account on the day of deposit. Assume that on January 18, Crystal Products sold and deposited $19,000 worth of bank credit card receipts. Prepare the general journal entry, including journal entry explanation, to record this transaction. Three (3) points Debit Credit Date Account Titles and Explanation

Explanation / Answer

Date General Journal Debit Credit Jan. 18 Cash $18,430 Credit Card Expense($19,000 x .03) $570 Sales $19,000

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