If a retailer makes a sale of $100 on a MasterCard,and MasterCard takes a 5 percent discount on the sale,the retailer would record Cash for $100 and Accounts Payable for $5.

Question

Quizplus · Accepted Answer

The retailer would record Cash for $95 (the amount received after the 5% discount) and Sales Revenue for $100. There is no need to record an Accounts Payable in this scenario as the retailer has received the full amount of the sale.

If a Retailer Makes a Sale of $100 on a MasterCard,and