Anchor Sales Accepts Credit Cards from Its Customers

question 116

Essay

Anchor Sales accepts credit cards from its customers. Assume Anchor makes a sale of $100 and the processor charges a 3% fee. Assume that the credit card processing company uses the net method of depositing funds. Provide the journal entry made by Anchor to record the sales revenue.

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Definitions:

Seasonal Index

Seasonal index refers to a numerical value that is assigned to specific time intervals to measure the seasonal pattern or variation in a data set over a period.

Deseasonalized

Deseasonalized data refers to the removal of seasonal effects from a time series to better identify trends and other underlying patterns.

Seasonal Index

A coefficient that modifies data to account for seasonal effects, facilitating more accurate trend analysis over time.

Forecasted Sales

Predicted revenues that a company expects to earn in a future period based on historical data, market trends, and analysis.