Question

MacKenzie Company sold $300 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 1.5% 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

Dr Cash $295.5

Dr Card Expenses $4.50

Cr Sales $300

Step-by-step explanation:

Preparation of the Journal entry to record this sale transaction

Since we were told that the company sold the amount of $300 of the merchandise to a customer in which 1.5% was as well deducted as the service charge for sales on its credit card, this means that the Journal entry to record this sale transaction will be:

Dr Cash $295.5

($295.5-$4.50)

Dr Card Expenses $4.50

(1.5%×300)

Cr Sales $300