Omega Company agrees to transfer cash to Gamma Company immediately upon deposit of that company's credit card sales receipts. Omega Company charges 2% of card sales as its fee.
If Gamma Company deposits $114,000 credit card sales receipts, which of the following statements are true?

Question

Quizplus · Accepted Answer

Cash 111,720
Credit card fee expense 2,280
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Sales revenue 114,000
To record credit card sales and collection less a two percent fee.

Omega Company Agrees to Transfer Cash to Gamma Company Immediately