Jere Retailers accepted $57000 of Maxibank Visa credit card charges for merchandise sold on July 1. Maxibank charges 3% for its credit card use. The entry to record this transaction by Jere Retailers will include a credit to Sales Revenue of $57000 and a debit(s) to

Question

Quizplus · Accepted Answer

The correct entry includes debiting Cash for $55,290, which is the amount received after the service charge (3% of $57,000 = $1,710; $57,000 - $1,710 = $55,290), and debiting Service Charge Expense for $1,710 to record the cost of the credit card service.

Jere Retailers Accepted $57000 of Maxibank Visa Credit Card Charges