allows customers to use MasterCard. They report sales of $24,000 for the week. MasterCard charges Target a 3% fee. The journal entry for this transaction would be:
A)
$$\begin{array} { | l | l | l | l | }
\hline \text { Sales } & & 24,000 & \
\hline \text { Bankcard discount expense } & & 720 & \
\hline & \text { Cash } & & 24,720 \
\hline
\end{array}$$
B)
$$\begin{array} { | l | l | l | l | }
\hline \text { Cash } & & 24,000 & \
\hline \text { Bankcard discount expense } & & 720 & \
\hline & \text { Sales } & & 24,720 \
\hline
\end{array}$$
C)
$$\begin{array} { | l | l | l | l | }
\hline \text { Cash } & & 23,280 & \
\hline \text { Bankcard discount expense } & & 720 & \
\hline & \text { Sales } & & 24,000 \
\hline
\end{array}$$
D) none of the above

Question

allows customers to use MasterCard. They report sales of $24,000 for the week. MasterCard charges Target a 3% fee. The journal entry for this transaction would be:
A)
$$\begin{array} { | l | l | l | l | } 
\hline \text { Sales } & & 24,000 & \
\hline \text { Bankcard discount expense } & & 720 & \
\hline & \text { Cash } & & 24,720 \
\hline
\end{array}$$
B)
$$\begin{array} { | l | l | l | l | } 
\hline \text { Cash } & & 24,000 & \
\hline \text { Bankcard discount expense } & & 720 & \
\hline & \text { Sales } & & 24,720 \
\hline
\end{array}$$
C)
$$\begin{array} { | l | l | l | l | } 
\hline \text { Cash } & & 23,280 & \
\hline \text { Bankcard discount expense } & & 720 & \
\hline & \text { Sales } & & 24,000 \
\hline
\end{array}$$
D) none of the above

Quizplus · Accepted Answer

The correct journal entry reflects the sales amount ($24,000), the bankcard discount expense (3% of $24,000 = $720), and the cash received after the discount ($24,000 - $720 = $23,280). This shows the actual cash received and the expense incurred due to the MasterCard fee, accurately reflecting the transaction's impact on the business.

Allows Customers to Use MasterCard B) C) D) None of the Above