Prairie Outfitters, Inc, a retailer, accepts payment through credit cards
During August, credit card sales amounted to $12,000. The processor charges a 3% fee. Assuming that the credit card processor uses the gross method, prepare the journal entries, on the books of Prairie Outfitters, for the credit card sales and the payment of fees. (Ignore cost of goods sold.)
What will be an ideal response
Cash 12,000
Sales Revenue 12,000
Credit Card Expense 360
Cash 360
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