Tecom Accepts the NOVA Credit Card for Credit Card Sales

question 126

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Tecom accepts the NOVA credit card for credit card sales. Tecom sends credit card receipts to NOVA on a weekly basis. NOVA charges Tecom a 2% fee. Tecom usually receives payment from NOVA within a week. Prepare journal entries to record the following transactions of Tecom involving the NOVA credit card.

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Definitions:

Brand Awareness

The extent to which consumers are familiar with the qualities or image of a particular brand of goods or services, making it recognizable and distinguishable from competitors.

Brand Name

A Brand Name is a distinctive title given to a product or service by its manufacturer, which becomes its identity and differentiates it from competitors in the market.

Retailer

An enterprise that offers products to consumers in small amounts for personal use or consumption, instead of for selling again.

Marketing Communications

The various methods and channels a company uses to communicate with its market, providing information about its products or services to generate sales.