Question

We sell to a customer paying with Visa and the fee is 2%. Part of the transaction would include a debit to:

Answer 1

there are no available options, but the complete journal entry to record a credit card sale is:

Dr Cash account 98% of sale

Dr Credit card fees 2% of sale

Cr Sales revenue 100% of sale

Step-by-step explanation:

Since VISA payments are automatic, you can debit cash directly. There is no need to debit accounts receivable and then once the payment is confirmed, debit cash. Some credit cards do not pay automatically, and in those cases you should debit accounts receivable.

Instead of credit card fees, some people use credit card discount, or credit card expense, but all these accounts are basically the same. They are all expense accounts.