Accounting for Receivables

Presented below are two independent situations.
  1. On April 2, Jennifer Eiston uses her JCPenney Company credit card to purchase merchandise from a JCPenney store for $1,500. On May 1, Elston is is billed for the $1,500 amount due. Eiston pays $500 on the balance due on May 3. Eiston received a bill dated June 1 for the amount due, including interest at 1.0% per month on the unpaid balance as of May3. Prepare the entries on JCPenney Co.'s books related to the transactions that occurred on April 2, May 3, and June 1.
  2. on July 4, Spangler's Restaurant accepts a Visa card for a $200 dinner bill. Visa charges a 2% service fee. Prepare the entry on Spangler's books related to this transactions.


JCPenney Company
Journal Entries
Spangler's Restaurant
Journal Entry
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