If Mia charged $450 for the services provided to Olivia and Olivia used her credit card to pay her bill, how Mia would record this transaction?
A) Debit the Cash account for the amount of sale - Amount of merchant fees; Debit the Merchant Fees Expense account for the amount of fees; and Credit the Sales account for the total amount of the sale
B) Debit the Cash account for the amount of the sale; Credit the Merchant Fees Expense account for the amount of the fees; and Credit the Sales account for the amount of the sale - the amount of the merchant fees
C) Debit the Sales account for the amount of the sale; Credit the Cash account for the amount of the sale - the amount of the merchant fees; and Credit the Merchant Fees Expense account for the amount of the fees
D) No entry

Question

Quizplus · Accepted Answer

When a seller or service provider receives a credit card payment, they need to consider a reduction in the cash value of the transaction as a result of any credit card processing fees. In Mia's register, the entry would look like:
 11ee941a_b71f_d0ae_bdb6_171c1d11eeb8_TBW1041_00

If Mia Charged $450 for the Services Provided to Olivia