B-07.02 Problem

B-07.02 Problem - This card is not a bank card and...

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B-07.02 Morrison Mountain Medical Clinic (MMMC) accepts credit card payments from its patients. Following are the batched transactions for June 11. (1) Total charges on MasterMoney and Wisa credit cards were $21,000. These cards are "bank cards" and MMMC receives daily cash settlement directly to its bank account, net of service charges of 1.5%. (2) Total charges on USExpress cards were $3,000.
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Unformatted text preview: This card is not a bank card, and settlement does not occur until approximately two weeks following the date of the transaction. USExpress is known to charge a 4% fee, and this amount is recorded on the day of sale. Prepare journal entries for the credit card transactions. Be sure to include a separate entry for the eventual collection of the USExpress charges....
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