Colaw Stores accepts both its own and national credit cards. During the year, the following selected summary transactions occurred.
|
Jan. 15 |
Made Colaw 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 $4,500. |
|
Feb. 10 |
Collected $10,000 on Colaw credit card sales. |
|
15 |
Added finance charges of 1.5% to Colaw credit card account balances. |
Instructions
(a)Journalize the transactions for Colaw Stores.
(b)Indicate the statement presentation of the financing charges and the credit card service charge expense for Colaw Stores.