Asked by Kerri Lynn Eklund on Jun 30, 2024
Verified
MacKenzie Company sold $180 of merchandise to a customer who used a Regional Bank credit card.Regional Bank deducts a 4% service charge for sales on its credit cards.MacKenzie electronically remits the credit card sales receipts to the credit card company and receives payment immediately.The journal entry to record this sale transaction would be:
A) Debit Cash of $180 and credit Sales $180.
B) Debit Cash of $180 and credit Accounts Receivable-Regional $180.
C) Debit Accounts Receivable-Regional $172.80; debit Credit Card Expense $7.20 and credit Sales $180.
D) Debit Cash $172.80; debit Credit Card Expense $7.20 and credit Sales $180.
E) Debit Cash $172.80 and credit Sales $172.80.
Service Charge
A fee collected for services provided, often added to the base cost of services in industries such as hospitality, banking, and utilities.
Credit Card
A financial tool allowing users to borrow funds for purchases, which must be repaid, often with interest.
Journal Entry
A record of financial transactions in the accounting books, indicating the accounts and amounts debited and credited.
- Conduct the preparation of journal entries for sales operations, including the subdivisions of credit sales and sales made via credit cards.
- Discern the ramifications of applying service fees to sales transactions executed with credit cards.
Verified Answer
Learning Objectives
- Conduct the preparation of journal entries for sales operations, including the subdivisions of credit sales and sales made via credit cards.
- Discern the ramifications of applying service fees to sales transactions executed with credit cards.
Related questions
Mullis Company Sold Merchandise on Account to a Customer for ...
On May 31,a Company Had a Balance in Its Accounts ...
Gemstone Products Allows Customers to Use Bank Credit Cards to ...
Mercks Uses the Perpetual Inventory System,and Accepts the Discovery Bank ...
A Company Allows Its Customers to Use Bank Credit Cards ...