A customer purchased a $2,000 item at ApplianceWorld,paying with a credit card.ApplianceWorld is charged a 2% fee by the credit card company.When recording this sale,ApplianceWorld would:
A)Debit Accounts Receivable for $2,000.
B)Credit Sales Revenue for $2,000.
C)Credit Sales Revenue for $1,960.

Question

Quizplus · Accepted Answer

ApplianceWorld would credit Sales Revenue for the full amount of the sale ($2,000), as the transaction records the total revenue earned from the sale, not the net amount after fees. The 2% credit card fee would be recorded separately as an expense.

A Customer Purchased a $2,000 Item at ApplianceWorld,paying with a Credit