Question

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 in approximately 5 days. The journal entry to record this sale transaction would be:

Accepted Answer

A)  Debit Cash of $180 and credit Sales $180.
B)  Debit Cash of $180 and credit Accounts Receivable-Regional $180.
C)  Debit Accounts Receivable-Regional $172.80; debit Credit Card Expense $7.20 and credit Sales $180.
D)  Debit Cash $172.80; debit Credit Card Expense $7.20 and credit Sales $180.
E)  Debit Cash $172.80 and credit Sales $172.80.F) A) and E)
G) A) and D)

Exam 7: Accounting for Receivables

Correct Answer
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Exam 7: Accounting for Receivables

Correct AnswerverifiedShow Answer

Correct Answer
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