Stelloh's Berry Farm accepted a bank-issued credit card in payment of a $1,300 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.):

Question

Quizplus · Accepted Answer

Since the credit card company charges 3%, Stelloh's will only receive $1,261 ($1,300 - $39). Therefore, the debit to Cash should be for $1,261. The $39 fee should be recorded as a separate debit to Credit Card Fee. The credit should be for the actual sales amount, $1,300.

Stelloh's Berry Farm Accepted a Bank-Issued Credit Card in Payment