Fashion Barn Company,a Retailer,accepts Payment Through Credit Cards

question 111

Essay

Fashion Barn Company,a retailer,accepts payment through credit cards.During August,credit card sales amounted to $12,000.The processor charges a 3% fee.Assume that the processor deposits the net amount.Prepare the journal entry for credit card sales.(Ignore cost of goods sold.)Omit explanation.

---

Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Stockholders' Equity/Total Assets

A ratio expressing the proportion of a company's assets that are financed by shareholders' equity.

Long-Term Debt/Stockholders' Equity

A financial ratio that measures a company's leverage by comparing its long-term debt to its stockholders' equity.

Current Liabilities

Current liabilities are short-term financial obligations that a company is expected to pay within one year.