A retailer accepted Visa charge sales totaling $1,000 and deposited the charge slips in the bank.Assuming a credit card discount expense of 4 percent,what would be the increase to Cash and the increase to Sales,respectively?

Question

Quizplus · Accepted Answer

The increase to Cash would be $960 because of the 4 percent credit card discount expense ($1,000 - 4% of $1,000 = $960). The increase to Sales would be $1,000 because the total sales amount before any deductions is recorded as Sales.

A Retailer Accepted Visa Charge Sales Totaling $1,000 and Deposited