Question

Brinker accepts all major bank credit cards, including First Savings Bank's, which assesses a 4% charge on sales for using its card. On May 26, Brinker had $6,500 in First Savings Bank Card credit sales. What entry should Brinker make on May 26 to record the deposit?

Answer 1

Answer:

Explanation:

The journal entry is shown below:

Cash A/c Dr $6,240

Credit card expense A/c Dr $260            ($6,500 × 4%)

            To Sales A/c $6,500

(Being the deposit is recorded)

For recording the deposit, we debited the cash account, credit card expense and credited the sales account so that the proper posting can be done.