Answer:
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Answer:
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Step-by-step explanation:
Answer: The answer is the 4th option
Step-by-step explanation: Hope this helps!
Answer:
A : debit to Service Charge Expense of $18.
Step-by-step explanation:
First, one should calculate the value, in dollars of the credit card service fee
Fee = 2% x $900 = $18.
Since this fee is classified as "money coming out" of the account, the entry to a record of this transaction should include a debit to Service Charge Expense of $18.
The correct answer is alternative A.
*The whole purchase amount ($900) should be credited and the service expense should be debited, unlike alternative C, which merges both entries into one.