Basic Bank Services Bank account Bank deposits and cheques Electronic funds transfer Bank credit...
4
Basic Bank Services • Bank account • Bank deposits and cheques • Electronic funds transfer • Bank credit card transactions • Debit card transactions 1 © 2013 McGraw-Hill Ryerson Limited. Banking Activities as Banking Activities as Controls Controls LO 5
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Transcript of Basic Bank Services Bank account Bank deposits and cheques Electronic funds transfer Bank credit...
Basic Bank Services• Bank account• Bank deposits and cheques• Electronic funds transfer• Bank credit card transactions• Debit card transactions
1 © 2013 McGraw-Hill Ryerson Limited.
Banking Activities as ControlsBanking Activities as Controls
LO 5
• Many companies allow customers to use bank credit cards for their purchases.
• The risk of bad debts is transferred to the credit card company.
• The company collects cash from the sale quickly.
• The credit card companies charge a fee to the vendor.
2 © 2013 McGraw-Hill Ryerson Limited.
Credit Card TransactionsCredit Card Transactions
LO 5
TechCom has $100 of credit card sales with a 4% fee and cash is received immediately (assume cost of sales is $40).
GENERAL JOURNAL Page 8Description PR Debit Credit
Aug. 15 Cash 96.00
Credit Card Expense 4.00
Sales 100.00
To record credit card expense less 4% fee
15 Cost of Goods Sold 40.00 Merchandise Inventory 40.00
To record cost of sales
Date
3 © 2013 McGraw-Hill Ryerson Limited.
Illustration-Credit Card Illustration-Credit Card TransactionTransaction
LO 5
• Many companies allow customers to use debit cards for their purchases.
• The bank transfers funds from the customer’s account to the vendor’s bank account.
• The bank charges a fee to the vendor.• The entries are identical to a bank credit
card sale.
4 © 2013 McGraw-Hill Ryerson Limited.
Debit Card TransactionsDebit Card Transactions
LO 5
