Asked by Chris Gladden on Jun 30, 2024
Verified
Mercks uses the perpetual inventory system,and accepts the Discovery bank credit card for credit card sales.Discovery charges Mercks a 3% fee,and all credit card receipts deposited are credited to the company account on the day of deposit.Prepare journal entries to record the following transaction.
Service Fee
A charge for the provision of a service, often added to the basic price of the service.
Journal Entries
The basic unit of accounting record that details a financial transaction, showing debits and credits to accounts impacted by the transaction.
- Execute journal entries related to sales transactions, covering both credit sales and transactions conducted through credit cards.
- Comprehend the effects of service fees on credit card sales transactions.
Verified Answer
AM
Learning Objectives
- Execute journal entries related to sales transactions, covering both credit sales and transactions conducted through credit cards.
- Comprehend the effects of service fees on credit card sales transactions.
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