Question

Brinker accepts all major bank credit cards, including First Savings Bank's, which assesses a 2.5% charge on sales for using its card. On May 26, Brinker had $6,400 in First Savings Bank Card credit sales. What entry should Brinker make on May 26 to record the deposit? Multiple Choice Debit Cash $6,240; debit Credit Card Expense $160; credit Sales $6,400. Debit Cash $6,400; credit Sales $6,400. Debit Cash $6,560; credit Credit Card Expense $160; credit Sales $6,400. Debit Accounts Receivable $6,240; debit Credit Card Expense $160; credit Sales $6,400. Debit Accounts Receivable $6,400; credit Sales $6,400.

Answer 1

Answer:Debit Cash $6,240; debit Credit Card Expense $160

Step-by-step explanation:

Working

6,400 x 2.5% = $160 as the credit card expense

Credit sales - credit card expense= Cash

6400 - 160 = $6,240 --- cash

Account Debit Credit

Cash $6,240

Credit Card Expense $160

Credit Sales $6,400