Question

On July 4, Blossom's Restaurant accepts a Visa card for a $150 dinner bill. Visa charges a 2% service fee. Prepare the entry on Blossom’s books related to the transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

The journal entry is shown below.

Step-by-step explanation:

According to the scenario, the journal entry for the given data are as follows:

Journal entry

Jul.4 Cash A/c Dr $147

Card charges A/c Dr. $3

To Sales revenue A/c $150

(Being card transaction is recorded)

Computation:

Cash = $150 - 2% × $150 = $147

Card charges = $150 × 2% = $3