Question

On July 4, Sheridan's Restaurant accepts a Visa card for a $450 dinner bill. Visa charges a 2% service fee. Prepare the entry on Sheridan’s books related to the transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 4 enter an account title enter a debit amount enter a credit amount enter an account title

Answer 1

Step-by-step explanation:

The journal entry is shown below:

Cash A/c Dr $441

Service fee expense A/c Dr $9 ($450 × 2%)

To Sales revenue A/c $450

(Being sales revenue is recorded)

The remaining balance would be debited to the cash account. It is computed below

= $450 - $9

= $41

Since sales is made so we debited the cash account and the service fee expense account and credited the sales revenue account