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Eastland Company collected payment from the National Express Credit Card Company (nonbank) for sales of $1,000, less a 4% credit card collection fee. The proper
Eastland Company collected payment from the National Express Credit Card Company (nonbank) for sales of $1,000, less a 4% credit card collection fee. The proper journal entry to record this transaction would include :
a credit to service charge for $40.
a debit to cash for $1,000.
a debit to accounts receivable for $960
a credit to sales for $1,000
None of these
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