Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A customer pays for legal services for $2,300 using her bank debit card. The service fee the bank charges the retailer is $1.50 per transaction.

A customer pays for legal services for $2,300 using her bank debit card. The service fee the bank charges the retailer is $1.50 per transaction. The entry made to record the transaction by the retailer is:

Select one:

a.

debit Cash, $2,300; credit Service Revenue, $2,300

b.

debit Cash, $2,298.50; credit Service Revenue, $2,298.50

c.

debit Cash, $2,298.50, debit Bank Card Expense, $1.50; credit Service Revenue, $2,300

d.

debit Accounts Receivable, $2,298.50; debit Bank Card Expense, $1.50; credit Service Revenue, $2,300

e.

debit Cash, $2,300; credit Service Revenue, $2,298.50; credit Bank Card payable, $1.50

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

Recommended Textbook for

Auditing And Assurance Services

Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Strawser

2nd Edition

0073128244, 9780073128245

More Books

Students also viewed these Accounting questions

Question

Explain the development of human resource management (HRM)

Answered: 1 week ago