Question

Good Stuff Retailers accepted $50,000 of Wells Fargo Visa credit card charges for merchandise sold on July 1. Wells Fargo charges 5% for its credit card use. What should Good Stuff Retailers debit as a result of this transaction?

Answer 1

Good Stuff Retailers should debit their Cash account as a result of this transaction.

Step-by-step explanation:

Good Stuff Retailers should debit their Cash account as a result of this transaction. When customers pay with a credit card, the retailer receives the payment in the form of an electronic transfer to their bank account. This transfer increases the retailer's cash balance.