On September 14, 2013, Style Shoe Store sold $15,500 of merchandise and accepted credit cards as payment. Style electronically transmitted the credit card forms to the credit card company which charges a 3% fee to handle such transactions. On September 18, 2013, Style received the proceeds from the card company.
Required:
a) Prepare the journal entry to record the sale of the merchandise on 9/14/13. b) Prepare the journal entry to record the receipt of the check on 9/18/13. c) Prepare the operating activities section of the statement of cash flows for 2013.

Question

On September 14, 2013, Style Shoe Store sold $15,500 of merchandise and accepted credit cards as payment. Style electronically transmitted the credit card forms to the credit card company which charges a 3% fee to handle such transactions. On September 18, 2013, Style received the proceeds from the card company.
Required:
a) Prepare the journal entry to record the sale of the merchandise on 9/14/13.  b) Prepare the journal entry to record the receipt of the check on 9/18/13.  c) Prepare the operating activities section of the statement of cash flows for 2013.

Quizplus · Accepted Answer

The Answer of On September 14, 2013, Style Shoe Store sold $15,500 of merchandise and accepted credit cards as payment. Style electronically transmitted the credit card forms to the credit card company which charges a 3% fee to handle such transactions. On September 18, 2013, Style received the proceeds from the card company.
Required:
a) Prepare the journal entry to record the sale of the merchandise on 9/14/13.  b) Prepare the journal entry to record the receipt of the check on 9/18/13.  c) Prepare the operating activities section of the statement of cash flows for 2013.

On September 14, 2013, Style Shoe Store Sold $15,500 of Merchandise