Question

Messing Company has an agreement with a third-party credit card company, which calls for cash to be received immediately upon deposit of customers' credit card sales receipts. The credit card company receives 3.5 percent of card sales as its fee. Messing has $4,000 in credit card sales on January 1. Prepare the January 1 journal entry for Messing Company by selecting the account names from the drop-down menus and entering the dollar amounts in the debitor credit columns

Answer 1

Answer:

Thee jounal entry for January 1 of Messing Company is done below.

Explanation:

3.5% * 4000 = 140

Date                Account Titles                                                Dr             Cr

Jan 1           Cash                                                                $3,860

                   Credit Card Expense                                        140

                          Sales Revenue                                                           4,000