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MacKenzie Company sold $740 of merchandise to a customer who used a Regional Bank credit card. Regional Bank de?

Update:

M Company sold $740 of merchandise to a customer who used a Regional Bank credit card.Regional Bank deducts a 2.5% service charge for sales on its credit cards and credits M account immediately when sales are made Journal entry:

Debit Cash of $740 and credit Sales $740.

Debit Cash of $740 and credit Accounts Receivable $740.

Debit Accounts Receivable $740 and credit Sales $740.

Debit Cash $721.5; debit Credit Card Expense $18.5 and credit Sales $740.

Debit Cash $721.5 and credit Sales $721.5.

1 Answer

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  • 6 years ago

    I think it should read as Debit 721.5; debit cc 18.5 and credit sales 740

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