Presented below are two independent situations.
Instructions
a. On April 2, Jennifer Elston uses her IKEA (SWE) credit card to purchase merchandise from an IKEA store for €1,500. On May 1, Elston is billed for the €1,500 amount due. Elston pays €500 on the balance due on May 3. Elston receives a bill dated June 1 for the amount due, including interest at 1.0% per month on the unpaid balance as of May 3. Prepare the entries on IKEA’s books related to the transactions that occurred on April 2, May 3, and June 1.
b. On July 4, Dupré Restaurant accepts a Visa card for a €200 dinner bill. Visa charges a 2% service fee. Prepare the entry on Dupré’s books related to this transaction.
