Yo Accountants

[Will]

need some help

sold merchandise for 9,200(that cost 6,200) and accepted the customers Omni Card. The Omni reciepts are immediately deposited in Petri's bank account

Petri is the company name
Omni Card assesses a 4% service charge for credit card sales.

how would i record this in a general journal
debit to what and charge to what

thanks

[BigFratDaddy]

i think you would debit the amount of the sale and credit the amount of purchase and the transaction fee...i think thats what youre asking?

[upinya83]

hi will

[Will]

Originally Posted by upinya83

hi will

hey

[rjb1816]

i think you debit the sales and then credit the finance charge and also the cost of goods sold, but those would be two different accounts on the credit side

[Will]

thanks

[PigSkinTerror13]

Originally Posted by Will

sold merchandise for 9,200(that cost 6,200) and accepted the customers Omni Card. The Omni reciepts are immediately deposited in Petri's bank account

Petri is the company name
Omni Card assesses a 4% service charge for credit card sales.

how would i record this in a general journal
debit to what and charge to what

thanks

Will~ this question depends on what type of accounting you are studying... down below I have the correct two transactions, but forgot how to make up the other $3000

Dr Accounts Receivable $9200
Cr Inventory $6200
Cr COGS
Cr Finance Charge
-----for the sale of goods

Dr Cash $9200
Cr Owners' Equity $9200
-----for deposit of cash

[Hawk Maniac]

Debit Cash $8,832
Debit Finance Charge Expense $368
Credit Sales $9,200

Debit Cost of Goods Sold $6,200
Credit Inventory $6,200

This will have your cash account reflect the net amount of the deposit which is $8,832.

You will be showing a profit on the transaction of $2,632 (Income of $9,200 and expenses of $6,568).

[PigSkinTerror13]

Originally Posted by Hawk Maniac

Debit Cash $8,832
Debit Finance Charge Expense $368
Credit Sales $9,200

Debit Cost of Goods Sold $6,200
Credit Inventory $6,200

This will have your cash account reflect the net amount of the deposit which is $8,832.

You will be showing a profit on the transaction of $2,632 (Income of $9,200 and expenses of $6,568).

I agree with you on some of it, but how about the account receivable?? they did sell merchandise on credit

[Will]

thanks guys

[Deck]

hawk has got it.

[NY Mane]

Will,

Is this an LLC business? Sole proprietorship? Partnership?