A retailer has 3% credit/debit card service fees deducted from the proceeds from each sale.The retailer has $1,700 in credit/debit card sales for the day.The journal entry to record these sales would be to:

Question

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The retailer has to record the credit/debit card sales after deducting the service fees. So, the journal entry would be to debit Cash for the reduced amount ($1,700 - $51 = $1,649) and debit Service Fee Expense for $51, and credit Sales for the full amount of credit/debit card sales ($1,700). Hence, option C is the correct choice. Option A is not correct because this option does not record the service fee expense. Option B is not correct because it does not account for the service fee deduction. Option D is not correct because it credits the Sales account for an incorrect amount ($1,649 instead of $1,700).

A Retailer Has 3% Credit/debit Card Service Fees Deducted from the Proceeds