Stelloh's Berry Farm accepted a bank-issued credit card in payment of a $1,300 sales transaction.Stelloh's bank charges 3% to process the transaction.The journal entry to record the sales transaction will include (Ignore cost of goods sold.):

Question

Quizplus · Accepted Answer

Since Stelloh's Berry Farm accepted a bank-issued credit card in payment of a $1,300 sales transaction and the bank charges 3% to process the transaction, the journal entry to record the sales transaction will include a debit to Cash for $1,261 (which is the $1,300 payment minus the 3% fee of $39), a debit to Credit Card Fee for $39 (which is the bank fee), and a credit to Sales Revenue for the full amount of $1,300. Therefore, choice C is the correct answer.

Stelloh's Berry Farm Accepted a Bank-Issued Credit Card in Payment