Question

question 7 (10 points)
a company received cash sales of $15000. they also collected $43000 in receivables during the month. answer questions 4 to 6 with this information.

1. if the sales received were all made by credit cards with a fee of 1.25%, what would be the journal entry for cash?

187.50 credit
187.50 debit
14,821.50 credit
14,821.50 debit

question 8 (10 points)
a company writes a check but does not have enough money to cover the balance. what fee might the bank assess the company in this case?

deposit fee
reconciliation fee
non sufficient fund fee
expense overage fee

Explanation:

Calculate credit card fee and net cash for Question 6

Using the Cash Sales Journal Entry knowledge point

$$
LATEXBLOCK0
$$

Determine the journal entry for cash in Question 6

Since the company is receiving cash from sales, the Cash account must be increased. An increase in an asset account like Cash is recorded as a debit. Therefore, the journal entry for cash is a debit of \$14,812.50.

Identify the bank fee for an overdrawn account in Question 8

When a company writes a check without sufficient funds in its bank account to cover the balance, the bank charges a penalty. This fee is standardly referred to as a Non-Sufficient Funds (NSF) fee.

Answer:

Question 6

• 187.50 Credit
• 187.50 Debit
• 14,821.50 Credit
• 14,821.50 Debit (Correct answer)

Question 8

• Deposit Fee
• Reconciliation Fee
• Non sufficient Fund Fee (Correct answer)
• Expense overage Fee