Outdoors Unlimited Accepts the Explorer Credit Card from Its Customers

question 123

Essay

Outdoors Unlimited accepts the Explorer credit card from its customers. Explorer charges a 3.5% service fee and pays Outdoors Unlimited the amount net of Explorer charges once a month. During February, Outdoors Unlimited sold $27,000 worth of merchandise to customers using the Explorer charge card. On February 28, Outdoor Unlimited sent the $27,000 worth of credit card receipts to Explorer. On March 4, Outdoors Unlimited received cash proceeds from Explorer for the February credit sales less the service charge. Prepare the journal entries to record February sales and the March 4 cash receipt.

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Definitions:

Guard Cells

Specialized cell pairs in plant leaves that control the opening and closing of stomata to regulate gas exchange and water loss.

Parenchyma

The functional tissues in an organ or plant, made up of cells that perform the specific function of that organ or structure.

Sieve-Tube Member

A type of elongated cell in the phloem of flowering plants, responsible for the transport of nutrients, particularly sucrose, throughout the plant.

Cuticle

In plants, a waxy layer covering the epidermis of plants, that protects the plant against water loss and disease-causing organisms. In animals, an outer covering that protects and supports the organism.