Question

On March 4, Micro Sales makes $4,850 in sales on bank credit cards that charge a 2.5% service charge and deposits the funds into Micro Sales' bank accounts at the end of the business day. Journalize the sales and recognition of expense as a single journal entry.

Answer 1

Answer:

Please see the journal entry below

Explanation:

Dr Cash. $4,728

($4,850 - $121.25)

Dr Credit card expense. $121.25

(2.5% × $4,850)

Cr Sales $4,850

We can infer from the question that sales can be debited to cash since the deposit is at the end of the business day.