Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

8. Kenai Company sold $600 of merchandise to a customer who used a National Bank credit card. National Bank deducts a 3% service charge for

image text in transcribed
8. Kenai Company sold $600 of merchandise to a customer who used a National Bank credit card. National Bank deducts a 3% service charge for sales on its credit cards. Kenai electronically remits the credit card sales receipts to the credit card company and receives payment immediately. The journal entry to record the collection from the credit card company would be: A) Debit Cash of $618 and credit Accounts Receivable-National $618. B) Debit Cash of $618; credit Credit Card Expense $18 and credit Sales $600. C) Debit Accounts Receivable-National $582; debit Credit Card Expense $18 and credit Sales $600. D) Debit Cash $582; debit Credit Card Expense $18 and credit Sales $600

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions