Question

On July 4, Cullumber's Restaurant accepts a Visa card for a $1,350 dinner bill. Visa charges a 2% service fee. Prepare the entry on Cullumber’s books related to the transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Answer:

Journal entry

Explanation:

The journal entry is as follows

Cash      $1,323

Service charge expense ($1,350 × 2%) $27

               To    Sales Revenue  $1,350

(Being the cash is recorded)

for recording this transaction we debited the cash and expenses as it increase both balances while at the same time the sales revenue is also increased so it is credited