Tuckahoe Corporation accepted credit cards for $38,000 of services performed in March 2016.The credit card company charged a 3 ½% service fee and paid Tuckahoe as soon as it received the credit card receipts.
Required:
a)Prepare the general journal entry to record performance of the services.
b)Prepare the general journal entry for collection of the receivable from the credit card company.

Question

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The Answer of Tuckahoe Corporation accepted credit cards for $38,000 of services performed in March 2016.The credit card company charged a 3 ½% service fee and paid Tuckahoe as soon as it received the credit card receipts.
Required:
a)Prepare the general journal entry to record performance of the services.
b)Prepare the general journal entry for collection of the receivable from the credit card company.

Tuckahoe Corporation Accepted Credit Cards for $38,000 of Services Performed