Bowie Stores accepts both its own and national credit cards. During the year, the following selected summary transactions occurred.
|
Jan. |
15 |
Made Bowie credit card sales totaling $18,000. (There were no balances prior to |
|
January 15.) |
||
|
20 |
Made Visa credit card sales (service charge fee 2%) totaling $4,300. |
|
|
Feb. |
10 |
Collected $10,000 on Bowie credit card sales. |
|
15 |
Added finance charges of 1% to Bowie credit card balance. |
Instructions
(a) Journalize the transactions for Bowie Stores.
(b) Indicate the statement presentation of the financing charges and the credit card service charge expense for Bowie Stores.