Home Appliances allows customers to pay for merchandise with cash, debit cards, bank credit cards, or a Home Appliance Credit Card. The bank charges Home Appliances $1.00 for each debit card sale and a 4% fee for bank credit card sales. On September 25 a customer makes a $1,200 purchase from Home Appliances using her debit card.
Instructions
a. Prepare Home Appliances' journal entry to record this transaction.
b. Assume instead the customer pays for her purchase using her MasterCard. Record the transaction.
c. Assume instead the customer uses her Home Appliances store credit card. Record the transaction.

Question

Quizplus · Accepted Answer

The Answer of Home Appliances allows customers to pay for merchandise with cash, debit cards, bank credit cards, or a Home Appliance Credit Card. The bank charges Home Appliances $1.00 for each debit card sale and a 4% fee for bank credit card sales. On September 25 a customer makes a $1,200 purchase from Home Appliances using her debit card.
Instructions
a. Prepare Home Appliances' journal entry to record this transaction.
b. Assume instead the customer pays for her purchase using her MasterCard. Record the transaction.
c. Assume instead the customer uses her Home Appliances store credit card. Record the transaction.

Home Appliances Allows Customers to Pay for Merchandise with Cash