Question

Jervis accepts all major bank credit cards, including those issued by Northern Bank (NB), which assesses a 3% charge on sales for using its card. On June 28, Jervis had $3,500 in NB Card credit sales. What entry should Jervis make on June 28 to record the deposit?

Answer 1

Bank account XXXXX $3395

Credit Cards Commisions expenses $105

---------Revenue for sales $3500

Step-by-step explanation:

Jervis gets for each $1 of sales, $0.97. Because of $0.03 is commission (3%).

Then, he will get: $3500 × 0.97 = $3395