journalize entries

Maxi95 · #1 Aug 29, 2006, 08:54 PM

I've been trying to journalize this and think I've got it wrong:

Assume a 4% service fee is charged by American Express. Record the entry for the transaction on the restaurant's books for Dr. Miller’s AMEX credit card transaction.

The service fee is 2,000 x 4%=$80. The entry is
Accounts Receivable – American Express Dr $1,920
Service Charge Expense Dr $80
Revenue Cr $2,000

CaptainForest · Aug 29, 2006, 09:27 PM

Look’s correct to me.



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