Question

On March 4, Micro Sales makes $13,500 in sales on bank credit cards which charge a 3% service charge and deposits the funds into Micro Sales' bank accounts at the end of the business day.
Required:
Journalize the sales and recognition of expense. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to two decimal places.

Answer 1

Based on the sales made by Micro Sales on bank credit cards, the journal entries would be:

Date               Account Title                                        Debit               Credit

March 4          Cash                                                 $13,095

                      Card Service expense                     $   405

                       Sales Revenue                                                         $13,500

How is the transaction by Micro Sales recorded?

The cash account will be debited with:

= 13,500 x (1 - 3%)

= $13,095

The Card service expense is:

= 13,500 x 3%

= $405

Sales revenue will be credited by the amount of sales which is $13,500.

Find out more on recording credit card sales at brainly.com/question/24038076.

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