Newman Stores accepts both its own and national credit cards. During the year the following selected summary transactions occurred.
Jan. 15 Made Newman credit card sales totaling $22,000. (There were no balances prior to January 15.)
20 Made Visa credit card sales (service charge fee 2%) totaling $5,500.
Feb. 10 Collected $12,000 on Newman credit card sales.
15 Added finance charges of 1% to Newman credit card balance.
Instructions
(a) Journalize the transactions for Newman Stores.
(b) Indicate the statement presentation of the financing charges and the credit card service charge expense for Newman Stores.

Question

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The Answer of Newman Stores accepts both its own and national credit cards. During the year the following selected summary transactions occurred.
Jan. 15 Made Newman credit card sales totaling $22,000. (There were no balances prior to January 15.)
20 Made Visa credit card sales (service charge fee 2%) totaling $5,500.
Feb. 10 Collected $12,000 on Newman credit card sales.
15 Added finance charges of 1% to Newman credit card balance.
Instructions
(a) Journalize the transactions for Newman Stores.
(b) Indicate the statement presentation of the financing charges and the credit card service charge expense for Newman Stores.

Newman Stores Accepts Both Its Own and National Credit Cards