McGregor Company allows customers to pay with credit cards.The credit card company charges McGregor 3% of the sale.When a customer uses a credit card to pay McGregor $200 for services provided,McGregor would:

Question

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Debiting Service Fee Expense for $6 reflects the 3% fee charged by the credit card company on the $200 sale, which is $6 (200 x 0.03). This is the cost to McGregor for the transaction.

McGregor Company Allows Customers to Pay with Credit Cards