Stelloh's Berry Farm accepted a bank-issued credit card in payment of a $1300 sales transaction. Stelloh's bank charges 3% to process the transaction. The journal entry to record the sales transaction will include (Ignore cost of goods sold.) :
A) a debit to Accounts Receivable for $1261 and a credit to Sales Revenue for $1261.
B) a debit to Cash for $1300 and a credit to Sales Revenue for $1300.
C) a debit to Cash for $1261, a debit to Credit Card Discount Expense for $39 and a credit to Sales Revenue for $1300.
D) a debit to Accounts Receivable for $1300, a debit to Credit Card Revenue for $39 and a credit to Sales Revenue for $1339.
Correct Answer:
Verified
Q125: The higher the quick ratio,the easier it
Q127: Days' sales outstanding tells a company how
Q128: In order to effectively evaluate the days'
Q130: When compared to the current ratio,the quick
Q138: Which of the following is considered to
Q139: When computing the quick ratio,the numerator will
Q140: A measure of the ability of an
Q173: Trevino Company has decided to factor its
Q176: Lincoln Company sold $50,000 of accounts receivable
Q180: Factoring accounts receivable is used by:
A)start-up companies.
B)companies
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents