Question
Maple Co. pays a 3% fee on all Visa credit card sales and receives as cash deposit immediately following each credit card transaction. If Visa
Maple Co. pays a 3% fee on all Visa credit card sales and receives as cash deposit immediately following each credit card transaction. If Visa credit card sales for the company totalled $15,000 on April 19, the journal entry to recognize the receipt of cash and service charge expense should include which of the following?
Select one:
a. Debit Cash $14,550; debit Service Charge Expense $450.
b. Debit Cash $15,450; debit Service Charge Expense $450.
c. Debit Cash $15,000; credit Service Charge Expense $450.
d. Debit Cash $14,550; credit Service Charge Expense $450.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started