MacKenzie Company sold $680 of merchandise to a customer who used a Regional Ban

Question

MacKenzie Company sold $680 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 4.0% service charge for sales on its credit cards. MacKenzie electronically remits the credit card sales receipts to the credit card company and receives payment in approximately 5 days. The journal entry to record this sale transaction would be:

Debit Cash of $680 and credit Sales $680.

Debit Cash of $680 and credit Accounts Receivable—Regional $680.

Debit Accounts Receivable—Regional $652.8; debit Credit Card Expense $27.2 and credit Sales $680.

Debit Cash $652.8; debit Credit Card Expense $27.2 and credit Sales $680.

Debit Cash $652.8 and credit Sales $652.8.

Explanation / Answer

Debit Accounts Receivable—Regional $652.8; debit Credit Card Expense $27.2 and credit Sales $680

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