Question 9.1: A small retailer accepts credit cards and has its own store ...

Fundamental Accounting Principles

A small retailer accepts credit cards and has its own store credit card. Prepare journal entries to record the following transactions for the retailer. (The retailer uses the perpetual inventory system.)

Jan. 2 Sold merchandise for $1,000 (that had cost $600) and accepted the customer’s AA Bank Card. AA charges a 5% fee.

6 Sold merchandise for $400 (that had cost $300) and accepted the customer’s VIZA Card. VIZA charges a 3% fee.

31 Recognized the $75 interest revenue earned on its store credit card for January.

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