Morgan Retailers accepted ($ 50,000) of Citibank VISA credit card charges for merchandise sold on July 1.

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Morgan Retailers accepted $\$ 50,000$ of Citibank VISA credit card charges for merchandise sold on July 1.

Citibank charges $4 \%$ for its credit card use. The entry to record this transaction by Morgan Retailers will include a credit to sales of $\$ 50,000$ and a debit(s) to:

a. Cash

$\$ 48,000$

and Service Charge Expense

$\$ 2,000$

b. Accounts Receivable

$\$ 48,000$

and Service Charge Expense

$\$ 2,000$

c. Cash

$\$ 50,000$

d. Accounts Receivable

$\$ 50,000$

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Financial Accounting

ISBN: 9780471169208

2nd Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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Question Posted: Jun 13, 2024 02:09 AM

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Morgan Retailers accepted ($ 50,000) of Citibank VISA credit card charges for merchandise sold on July 1.

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Financial Accounting

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