New Franchise Retailers accepted $40,000 of Milton Bank MasterCard credit card charges for merchandise sole on August 1. Milton Bank charges 4% for its credit card use. The entry to record this transaction by New Franchise Retailers will include a credit to Sales of $40,000 and a debit(s) to 1. Accounts receivable for $40,000. 2. Cash for $40,000. 3. Accounts receivable for $$38,400 and Service charge expense for $1,600. 4. Cash for $38,400 and Service charge expense for $1,600.