Kimmel, Accounting, Ge araia nt On July 4, Sheffield Corp. accepts a Visa card f

Question

Kimmel, Accounting, Ge araia nt On July 4, Sheffield Corp. accepts a Visa card for a $850 dinner bill. Visa charges a 2% service fee Prepare the entry on Shefteld Core s boks related to thetransaction. (Credit account utes are auromaticaly indented when amount s entered. Do not indent manualy) Date Account Titles and Explanation Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor answer th attempts All Rights Reserved, A Division of

Explanation / Answer

Journal Entry on July 4 Would be ;

Cash A/c Dr     $833

Service Charge Expense A/c              Dr     $17

To Sales Revenue A/c Cr $850

Service charge expense = Credit card sales x service charge = $850 x 2% = $17.

The service charge reduces the cash collected by the seller, but does not reduce its sales revenue.

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