Question

Under the net method of handling credit and debit card​ payments, the​ ________. A. processing fee is debited to the Credit Card Expense account on or just after the date of sale B. business writes a check to the thirdminusparty processor for the processing fee C. net amount of the sale is credited to the Sales Revenue account on or just after the date of sale D. credit to the sales revenue is selling price less the transaction fee

Answer 1

Answer:

The answer is: D) credit to the sales revenue is selling price less the transaction fee

Explanation:

Let's assume your company sells product X and accepts credit card payments. Product X's listing price is $100 which is the amount paid by your customers. Your company will not receive the full $100, depending on the processing fees you will be receiving about $98.

So you have to credit $98 to sales revenue (sales price - processing fees).