Question

MacKenzie Company sold $400 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 2.0% 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:

Answer 1

Date Account Title Debit Credit

XX-XX-XXXX Cash $392

Credit card service charge $ 8

Sales $400

Working

Cash :

= 400 * (1 - 2% service charge)

= $392

Credit card service charge:

= 400 * 2%

= $8