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

Question 164

Multiple Choice

Terry's Berry Farm accepted a bank-issued credit card in payment of a $1,200 sales transaction. Terry's bank charges 2% to process the transaction. The journal entry to record the sales transaction will include:


A) a credit to Sales Revenue for $1,176.
B) a debit to Cash for $1,200.
C) a debit to Credit Card Discount Expense for $24.
D) a debit to Accounts Receivable for $1,200.

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