Brinker accepts all major bank credit cards, including First Savings Bank's, which assesses a 5% charge on sales for using its card. On May 26, Brinker had $5500 in First Savings Bank Card credit sales. What entry should Brinker make on May 26 to record the deposit?
A. Debit Cash $5500; credit Sales $5500.
B. Debit Accounts Receivable $5225; debit Credit Card Expense $275; credit Sales $5500.
C. Debit Cash $5775; credit Credit Card Expense $275; credit Sales $5500.
D. Debit Accounts Receivable $5500; credit Sales $5500.
E. Debit Cash $5225; debit Credit Card Expense $275; credit Sales $5500.
Answer: E
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