Question

Question 7 (10 points) A company received cash sales of $15000. They also collected $43000 in receivables during the month. Answer questions 4 to 6 with this information. 6. If the sales received were all made by credit cards with a fee of 1.25%, what would be the journal entry for cash? Question 7 options: 187.50 Credit 187.50 Debit 14,821.50 Credit 14,821.50 Debit

Answer 1

Answer: Debit 14,821.50

Explanation:

The following information can be gotten from the question:

Cash sales = $15000

Receivables = $43000

Since the sales received were all made by credit cards with a fee of 1.25%, the journal entry for cash will be calculated as:

= $15000 - (1.25% × $15000)

= $15000 - (0.0125 × $15000)

= $15000 - $187.50

= $14812.50

The journal entry for cash will be a debit of $14812.50