MacKenzie Company sold $340 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 2.5% 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 Cash $331.50 and credit Sales $331.50.
B. Debit Accounts Receivable $340 and credit Sales $340.
C. Debit Cash of $340 and credit Sales $340.
D. Debit Cash $331.50; debit Credit Card Expense $8.50 and credit Sales $340.
E. Debit Cash of $340 and credit Accounts Receivable $340.
Answer: D
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