Problem:
Robin Corporation accepted credit cards for $34,200 of services performed in October 2011.The credit card company charged a 3% service fee and paid Robin as soon as it received the credit card receipts.
Required:
Question 1: Prepare the general journal entry to record performance of the services.
Question 2: Prepare the general journal entry for collection of the receivable from the credit card company.
Note: Explain all steps comprehensively.