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.

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

MacKenzie Company sold $360 of merchandise to a customer who used a Regional Bank credit card....

MacKenzie Company sold $360 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 1.0% 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: Debit Cash of $360 and credit Sales $360. Debit Cash of $360 and credit Accounts Receivable $360. Debit Accounts Receivable $360 and credit Sales $360. Debit Cash $356.40; debit Credit Card Expense...

On October 7, Monty Company sold merchandise to a customer for $1,200 with credit terms of...

On October 7, Monty Company sold merchandise to a customer for $1,200 with credit terms of 2/10, n/30. The cost of the merchandise is $800. On October 10, Monty granted the customer a $100 allowance on the merchandise the customer purchased on October 7. In the October 10 journal entry, Monty will: Debit Merchandise Inventory $100; credit Cost of Goods Sold $100 Debit Merchandise Inventory $100; credit Sales Returns and Allowances $100 Debit Sales Returns and Allowance $100; credit Accounts...

The company sold merchandise to a customer on December 1, 2019, for $100,000. The customer paid...

The company sold merchandise to a customer on December 1, 2019, for $100,000. The customer paid with a promissory note that has a term of 6 months and an annual interest rate of 9%. The company’s accounting period ends on December 31. What amount should the company recognize as interest revenue on December 31, 2019?

At a major credit card bank, the percentages of people who historically apply for the Silver,...

At a major credit card bank, the percentages of people who historically apply for the Silver, Gold and Platinum cards are 60%, 30% and 10% respectively. In a recent sample of customers responding to a promotion, of 200 customers, 113 applied for Silver, 53 for Gold and 34 or Platinum. Is there evidence to suggest that the percentages for this promotion may be different from the historical proportions? a) What is the expected number of customers applying for each type...

On June 30, 2021, the Esquire Company sold some merchandise to a customer for $56,000. In...

On June 30, 2021, the Esquire Company sold some merchandise to a customer for $56,000. In payment, Esquire agreed to accept a 8% note requiring the payment of interest and principal on March 31, 2022. The 8% rate is appropriate in this situation. Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2021 interest accrual, and the March 31, 2022 collection. 2. If the...

On June 30, 2021, the Esquire Company sold some merchandise to a customer for $30,000

On June 30, 2021, the Esquire Company sold some merchandise to a customer for $30,000. In payment, Esquire agreed to accept a 6% note requiring the payment of interest and principal on March 31, 2022. The 6% rate is appropriate in this situation. Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2021 interest accrual, and the March 31, 2022 collection (Do not...

On June 30, 2021, the Esquire Company sold some merchandise to a customer for $32,000. In...

On June 30, 2021, the Esquire Company sold some merchandise to a customer for $32,000. In payment, Esquire agreed to accept a 5% note requiring the payment of interest and principal on March 31, 2022. The 5% rate is appropriate in this situation. Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2021 interest accrual, and the March 31, 2022 collection....

On June 30, 2018, the Esquire Company sold some merchandise to a customer for $56,000. In...

On June 30, 2018, the Esquire Company sold some merchandise to a customer for $56,000. In payment, Esquire agreed to accept a 8% note requiring the payment of interest and principal on March 31, 2019. The 8% rate is appropriate in this situation. Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2018 interest accrual, and the March 31, 2019...

On June 30, 2018, the Esquire Company sold some merchandise to a customer for $41,000 and...

On June 30, 2018, the Esquire Company sold some merchandise to a customer for $41,000 and agreed to accept as payment a noninterest-bearing note with an 6% discount rate requiring the payment of $41,000 on March 31, 2019. The 6% rate is appropriate in this situation. Esquire views the financing component of this contract as significant. Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods...

On June 30, 2021, the Esquire Company sold some merchandise to a customer for $40,000. In...

On June 30, 2021, the Esquire Company sold some merchandise to a customer for $40,000. In payment, Esquire agreed to accept a 5% note requiring the payment of interest and principal on March 31, 2022. The 5% rate is appropriate in this situation. Required: 1. Please help me make the journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2021 interest accrual, and the...

Question