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chapter07probsetc - PROBLEM SET C PROBLEM 7-1C Accounting...

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PROBLEM SET C PROBLEM 7-1C Accounting major Edward Middleton has an on-campus business baking and delivering warm cookies to freshman students. Edward accepts cash and two major credit cards, Collegeville Bankand and Plastic Fantastic, from parents who order the packages. Collegeville Bank deducts a 5% service charge on all sales and deposits the money in the checking accounts of its commercial customers as soon as the credit card receipts are received. Edward deposits Collegeville Bank receipts daily. Plastic Fantastic deducts a 3% service charge on all sales. They usually take about 10 days to pay once the credit card receipts are received. Edward deposits Plastic Fantastic receipts weekly. The following transactions were completed during September: Sept. 1 Made $670 ( that had cost $450) of sales to parents who used the Collegeville Bankcard. 2 Cash sales for the day amounted to $256 (that had cost $175.) 5 Made $1,290 (that had cost $850) of sales to parents who used the Plastic Fantastic card. 6 Made another $2,050 (that had cost $1425) of sales to parents who used the Plastic Fantastic card. 7 Submitted Plastic Fantastic card receipts to the credit card company for payment. 10 Made $1,440 ( that had cost $1020) of sales to parents who used the Collegeville Bankcard. 17 Received the amount due from Plastic Fantastic. Required Prepare journal entries to record the preceding transactions and events. (The company uses the perpetual inventory system.) PROBLEM 7-2C
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