A customer purchased a $2, 700 item at Appliance World, paying with a credit card. Appliance World is charged a 2% fee by the cr
edit card company. When recording this sale, Appliance World would: A. debit accounts receivable for $2, 700. B. credit sales revenue for $2, 700. C. credit sales revenue for $2, 646. D. credit unearned sales revenue for $2, 700.
1 answer:
Answer:
B.
Explanation:
Credit card is one of the most common way of making payment while a customer purchases anything in the market. The credit card company charge an amount that is payable by the seller.Thus, it is an expense for the one selling the product.
Given:
Credit card fee: 2%
Sales = $2,700
Credit card charges can be calculated as:
Credit card charges = Sales*Credit card fee
Credit card charges = $2,700*2%
Credit card charges = $54
Now, credit card charge is an expense so it will be debited. The amount is yet to be received so accounts receivable will also be debited. The revenue has been earned so it will be credited.
Thus, the journal entry for the given transaction has been attached below:
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A mortgage of $80,000 with 2 points means the borrower would have to pay at closing $800 is false because the real pay at closing is $1,600.
<h3>What is mortgage?</h3>A mortgage is a loan that is used to buy or to maintain a land, home, or other sort of real estate.
The borrower checks to refund the lender over a period of time, usually in an ordination of regular installments divided into principal and interest. The property is used as security for the loan.
According to the given information,
Mortgage Amount = $80,000
Points = 2
Let the 2 points is taken as a percentage:
Point 1 = 1%, and
Point 2 = 2%
Now, as we know that in the loan process, the amount of point is cyphered at the closing. Then, the closing cost is commuted as:
Therefore, the given problem is false, that the borrower have to pay $800, he would have to pay only $1,600.
Learn more about the mortgage, refer to:
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