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 $172.80 and credit Sales $172.80.
B. Debit Cash $172.80; debit Credit Card Expense $7.20 and credit Sales $180.
C. Debit Cash of $180 and credit Accounts Receivable?Regional $180.
D. Debit Accounts Receivable?Regional $172.80; debit Credit Card Expense $7.20 and credit Sales $180.
E. Debit Cash of $180 and credit Sales $180.


Answer: B

Business

You might also like to view...

Rejecting cost-benefit analysis in setting standards is not the same as rejecting cost-effective strategies in implementing those standards.

Answer the following statement true (T) or false (F)

Business

Each connector list should contain two parts: one focused on the organizational level, the other on the people level

Indicate whether the statement is true or false

Business

Before Carlos opened his new bakery, he baked a variety of sample cupcakes and cookies to sell at local farmers markets and other local events. Which stage of the scientific process of experimentation does this represent? a. asking lots of questions

a. asking lots of questions b. carrying out background research c. developing hypotheses d. testing the hypotheses by running experiments

Business

The alter-ego doctrine can be applied to a limited liability company.

Answer the following statement true (T) or false (F)

Business