Final answer:
The correct sales entry for a purchase using a Merill credit card, where a 5% usage fee is applied, would be to debit Accounts Receivable and credit Sales. This entry accounts for the revenue earned from the sale.
Step-by-step explanation:
The student is inquiring about the correct way to record a sales transaction involving multiple cases of beverages and the use of a credit card that imposes a fee on the business. When a customer purchases items and pays with a credit card, the business must record the total sales amount and also the fee charged by the credit card company.
The correct journal entry for the provided scenario is to debit Accounts Receivable for the total amount of the sale and to credit Sales for the same amount. This entry records the sale and the amount owed by the credit card company to the business. Additionally, a second entry would be required to account for the credit card fee, which would involve a debit to Merill Credit Card Fees and a credit to Accounts Receivable or Cash, depending on when the fee is paid or deducted.
Therefore, the correct answer for the sales entry of this purchase is:
a) Debit: Accounts Receivable, Credit: Sales
This entry reflects the increase in accounts receivable due to the sale made, and the credit to sales represents the revenue generated from the transaction.