Jeff Retailers accepted $75,000 of Citibank Visa credit card charges for merchandise sold on July 1.Citibank charges 2% for its credit card use.The entry to record this transaction by Jeff Retailers will include a credit to Sales Revenue of $75,000 and a debit(s) to

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Jeff Retailers received $75,000 from Citibank Visa credit card charges, but Citibank charges a 2% service fee for its credit card use, which is $1,500 ($75,000 x 2%). Therefore, Jeff Retailers will debit Cash for $73,500 ($75,000 - $1,500) and debit Service Charge Expense for $1,500 to reflect the service fee charged by Citibank. The credit will be to Sales Revenue for $75,000. Option B is incorrect because Jeff Retailers received cash from Citibank, not Accounts Receivable. Option C is incorrect because the transaction does not involve any interest expense. Option D is incorrect because Jeff Retailers did not create any Accounts Receivable through this transaction.

Jeff Retailers Accepted $75,000 of Citibank Visa Credit Card Charges