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Knife and Fork operates as a restaurant. Its customers can pay by cash, debit or credit card. For each debit transaction, John pays $0.15. For the credit card, John pays 2% of the total credit card transactions. On September 10, 2016, John had compiled the following summary for the work day. Total transaction on cash 46 - $2079 Total transaction on debit 0- $0 Total transaction on credit card - 85- $ 3518 Record the journal entry for Days sale
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Knife and Fork operates as a restaurant. Its customers can pay by cash...
Journal Entry for Day's Sales at Knife and Fork Restaurant on September 10, 2016
Date: September 10, 2016
Account: Sales
Debit: $5,597
Credit: Cash: $2,079, Debit Card Fees: $0.15, Credit Card Fees: $69.40, Credit Card Receivable: $3,448.45
Explanation:
1. Sales Revenue:
The total sales revenue for the day at Knife and Fork Restaurant was $5,597. This amount represents the total transactions made by the customers, including cash, debit, and credit card payments.
2. Cash Transactions:
The restaurant received cash payments from its customers amounting to $2,079. These cash transactions are recorded as an increase in the Cash account. Since cash is an asset, it is debited with the amount received.
3. Debit Card Fees:
No transactions were made using debit cards on September 10, 2016. Therefore, there are no debit card fees to be recorded in the journal entry.
4. Credit Card Transactions and Fees:
There were a total of 85 credit card transactions made by the customers, amounting to $3,518. The credit card fees charged by the payment processor for these transactions are calculated as 2% of the total credit card transactions.
To record the credit card fees, we credit the Sales account with the total credit card fees of $69.40. This reduces the total sales revenue recorded in the Sales account.
5. Credit Card Receivable:
To record the credit card transactions, we need to create a new account called Credit Card Receivable. This account represents the amount owed to the restaurant by the credit card companies for the credit card transactions made by the customers.
We credit the Sales account with the total credit card transactions of $3,518. This reduces the total sales revenue recorded in the Sales account. We then debit the Credit Card Receivable account with the same amount, representing the amount owed to the restaurant by the credit card companies.
The journal entry for the day's sales at Knife and Fork Restaurant on September 10, 2016, is as follows:
Sales $5,597
Cash $2,079
Debit Card Fees $0.15
Credit Card Fees $69.40
Credit Card Receivable $3,448.45
Note: The journal entry above assumes that there are no other expenses or accounts involved in the day's sales.
Date: September 10, 2016
Account: Sales
Debit: $5,597
Credit: Cash: $2,079, Debit Card Fees: $0.15, Credit Card Fees: $69.40, Credit Card Receivable: $3,448.45
Explanation:
1. Sales Revenue:
The total sales revenue for the day at Knife and Fork Restaurant was $5,597. This amount represents the total transactions made by the customers, including cash, debit, and credit card payments.
2. Cash Transactions:
The restaurant received cash payments from its customers amounting to $2,079. These cash transactions are recorded as an increase in the Cash account. Since cash is an asset, it is debited with the amount received.
3. Debit Card Fees:
No transactions were made using debit cards on September 10, 2016. Therefore, there are no debit card fees to be recorded in the journal entry.
4. Credit Card Transactions and Fees:
There were a total of 85 credit card transactions made by the customers, amounting to $3,518. The credit card fees charged by the payment processor for these transactions are calculated as 2% of the total credit card transactions.
To record the credit card fees, we credit the Sales account with the total credit card fees of $69.40. This reduces the total sales revenue recorded in the Sales account.
5. Credit Card Receivable:
To record the credit card transactions, we need to create a new account called Credit Card Receivable. This account represents the amount owed to the restaurant by the credit card companies for the credit card transactions made by the customers.
We credit the Sales account with the total credit card transactions of $3,518. This reduces the total sales revenue recorded in the Sales account. We then debit the Credit Card Receivable account with the same amount, representing the amount owed to the restaurant by the credit card companies.
The journal entry for the day's sales at Knife and Fork Restaurant on September 10, 2016, is as follows:
Sales $5,597
Cash $2,079
Debit Card Fees $0.15
Credit Card Fees $69.40
Credit Card Receivable $3,448.45
Note: The journal entry above assumes that there are no other expenses or accounts involved in the day's sales.
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Knife and Fork operates as a restaurant. Its customers can pay by cash, debit or credit card. For each debit transaction, John pays $0.15. For the credit card, John pays 2% of the total credit card transactions. On September 10, 2016, John had compiled the following summary for the work day. Total transaction on cash 46 - $2079 Total transaction on debit 0- $0 Total transaction on credit card - 85- $ 3518 Record the journal entry for Days sale
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Knife and Fork operates as a restaurant. Its customers can pay by cash, debit or credit card. For each debit transaction, John pays $0.15. For the credit card, John pays 2% of the total credit card transactions. On September 10, 2016, John had compiled the following summary for the work day. Total transaction on cash 46 - $2079 Total transaction on debit 0- $0 Total transaction on credit card - 85- $ 3518 Record the journal entry for Days sale for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Knife and Fork operates as a restaurant. Its customers can pay by cash, debit or credit card. For each debit transaction, John pays $0.15. For the credit card, John pays 2% of the total credit card transactions. On September 10, 2016, John had compiled the following summary for the work day. Total transaction on cash 46 - $2079 Total transaction on debit 0- $0 Total transaction on credit card - 85- $ 3518 Record the journal entry for Days sale covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Knife and Fork operates as a restaurant. Its customers can pay by cash, debit or credit card. For each debit transaction, John pays $0.15. For the credit card, John pays 2% of the total credit card transactions. On September 10, 2016, John had compiled the following summary for the work day. Total transaction on cash 46 - $2079 Total transaction on debit 0- $0 Total transaction on credit card - 85- $ 3518 Record the journal entry for Days sale.
Knife and Fork operates as a restaurant. Its customers can pay by cash, debit or credit card. For each debit transaction, John pays $0.15. For the credit card, John pays 2% of the total credit card transactions. On September 10, 2016, John had compiled the following summary for the work day. Total transaction on cash 46 - $2079 Total transaction on debit 0- $0 Total transaction on credit card - 85- $ 3518 Record the journal entry for Days sale for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Knife and Fork operates as a restaurant. Its customers can pay by cash, debit or credit card. For each debit transaction, John pays $0.15. For the credit card, John pays 2% of the total credit card transactions. On September 10, 2016, John had compiled the following summary for the work day. Total transaction on cash 46 - $2079 Total transaction on debit 0- $0 Total transaction on credit card - 85- $ 3518 Record the journal entry for Days sale covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Knife and Fork operates as a restaurant. Its customers can pay by cash, debit or credit card. For each debit transaction, John pays $0.15. For the credit card, John pays 2% of the total credit card transactions. On September 10, 2016, John had compiled the following summary for the work day. Total transaction on cash 46 - $2079 Total transaction on debit 0- $0 Total transaction on credit card - 85- $ 3518 Record the journal entry for Days sale.
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