MacKenzie Company sold $800 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 2.0% service charge for sales on its credit cards and credits MacKenzie's account immediately when sales are made. The journal entry to record this sale transaction would be:
A. Debit Accounts Receivable $800 and credit Sales $800.
B. Debit Cash $784.00 and credit Sales $784.00.
C. Debit Cash of $800 and credit Accounts Receivable $800.
D. Debit Cash $784.00; debit Credit Card Expense $16.00 and credit Sales $800.
E. Debit Cash of $800 and credit Sales $800.
Answer: D
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