MacKenzie Company sold $520 of merchandise to a customer who used a Regional Bank credit card....

MacKenzie Company sold $520 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 5.0% service charge for sales on its credit cards. MacKenzie electronically remits the credit card sales receipts to the credit card company and receives payment immediately. The journal entry to record this sale transaction would be:

Debit Accounts Receivable—Regional $494.00; debit Credit Card Expense $26.00 and credit Sales $520.
Debit Cash $494.00; debit Credit Card Expense $26.00 and credit Sales $520.
Debit Cash of $520 and credit Sales $520.
Debit Cash $494.00 and credit Sales $494.00.
Debit Cash of $520 and credit Accounts Receivable—Regional $520.

Solutions

Expert Solution

Journal entry

Date	account and explanation	Debit	Credit
	Cash (520*95%)	494
	Credit Card expense	26
	Sales		520

So answer is b) Debit Cash $494.00; debit Credit Card Expense $26.00 and credit Sales $520.

ekkarill92 answered 2 years ago

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