Jervis accepts all major bank credit cards,including those issued by Northern Bank (NB),which assesses a 3% charge on sales for using its card.On June 28,Jervis had $3,500 in NB Card credit sales.What entry should Jervis make on June 28 to record the deposit?
A)Debit Cash $3,500;credit Sales $3,500
B)Debit Accounts Receivable $3,500;credit Sales $3,500
C)Debit Cash $3,605;credit Credit Card Expense $105;credit Sales $3,500
D)Debit Cash $3,395;debit Credit Card Expense $105;credit Sales $3,500
E)Debit Accounts Receivable $3,395;debit Credit Card Expense $105;credit Sales $3,500

Question

Quizplus · Accepted Answer

Jervis should record the cash received after the 3% fee is deducted, which is $3,395, and record the $105 as a credit card expense.

Jervis Accepts All Major Bank Credit Cards,including Those Issued by Northern