Answer:
The Journal entry is as follows:
On May 10,
Cash A/c Dr. $37,518
Service Charge Expense A/c Dr. $1,482
To Sales Revenue $39,000
(To record the sale of merchandise)
Working notes:
Service Charge Expense:
= Sales Revenue × 3.8% service charge for credit card sales
= $39,000 × 3.8%
= $1,482