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

Question 20

Multiple Choice

Stelloh's Berry Farm accepted a bank-issued credit card in payment of a $1,600 sales transaction.Stelloh's bank charges 1% to process the transaction.The journal entry to record the sales transaction will include (Ignore cost of goods sold. ) :


A) a debit to Accounts Receivable for $1,584 and a credit to Sales Revenue for $1,584.
B) a debit to Cash for $1,600 and a credit to Sales Revenue for $1,600.
C) a debit to Cash for $1,584,a debit to Credit Card Discount Expense for $16 and a credit to Sales Revenue for $1,600.
D) a debit to Accounts Receivable for $1,600,a debit to Credit Card Revenue for $16 and a credit to Sales Revenue for $1,616.

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