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 Accounts Receivable $340.
D. Debit Cash of $340 and credit Sales $340.
E. Debit Cash $331.50; debit Credit Card Expense $8.50 and credit Sales $340.
Answer: E
You might also like to view...
Which of the following communication network is decentralized and allows a free flow of information among all group members?
A. circle B. wheel C. chain D. all-channel
In the second stage of the retail life cycle, innovative retailers expand their geographic bases of operations and newer firms enter the field
Indicate whether the statement is true or false
Aggregating products or services together generally decreases the forecast accuracy
Indicate whether the statement is true or false
What are the LOQ and LBDQ?
What will be an ideal response?