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Peru Furniture City, Inc., sold $83,000 of furniture in May to customers who used their American Express Credit Cards.

Such sales are subject to a 4% discount by American Express (a nonbank credit card).

Prepare journal entries to record the sales and the subsequent receipt of cash from the credit card company.

Journal
DateDescriptionDebitCredit
May 31
May 31
May 31
June 15
June 15

Use the same information as above, but assume the credit cards used were VISA cards (a bank credit card).

Journal
DateDescriptionDebitCredit
May 31
May 31
June 15
June 15