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MacKenzie Company sold $300 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 1.5% service charge for sales on its credit cards and credits MacKenzie's account immediately when sales are made. The journal entry to record this sale transaction would be:

Answer :

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Answer:

Dr Cash $295.5

Dr Card Expenses $4.50

Cr Sales $300

Explanation:

Preparation of the Journal entry to record this sale transaction

Since we were told that the company sold  the amount of $300 of the  merchandise to a customer in which  1.5% was as well deducted as the  service charge for sales on its credit card, this means  that the Journal entry to record this sale transaction will be:

Dr Cash $295.5

($295.5-$4.50)

Dr Card Expenses $4.50

(1.5%×300)

Cr Sales $300

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