Kenai Company sold $600 of merchandise to a customer who used a National Bank credit card.National Bank deducts a 3% service charge for sales on its credit cards.Kenai electronically remits the credit card sales receipts to the credit card company and receives payment immediately.The journal entry to record the collection from the credit card company would be:
A)Debit Cash of $618 and credit Accounts Receivable−National $618.
B)Debit Cash of $618; credit Credit Card Expense $18 and credit Sales $600.
C)Debit Accounts Receivable−National $582; debit Credit Card Expense $18 and credit Sales $600.
D)Debit Cash $582; debit Credit Card Expense $18 and credit Sales $600.
E)Debit Cash $582 and credit Sales $582.

Question

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Kenai receives $582 in cash after the 3% service charge ($18) is deducted from the $600 sale. The entry records the cash received, the expense of the service charge, and the sales revenue.

Kenai Company Sold $600 of Merchandise to a Customer Who