Jervis accepts all major bank credit cards,including those issued by Northern Bank (NB) ,which assesses a 3% charge on sales for using its card.On June 28,Jervis had $3,500 in NB Card credit sales.What entry should Jervis make on June 28 to record the deposit?

A) Debit Cash $3,500; credit Sales $3,500
B) Debit Accounts Receivable $3,500; credit Sales $3,500
C) Debit Cash $3,605; credit Credit Card Expense $105; credit Sales $3,500
D) Debit Cash $3,395; debit Credit Card Expense $105; credit Sales $3,500
E) Debit Accounts Receivable $3,395; debit Credit Card Expense $105; credit Sales $3,500

Question

Zybrea Knight · Accepted Answer

Final Answer : D, Explanation :  The correct entry to record the deposit and the credit card expense involves debiting Cash for the net amount received ($3,395) after the 3% charge, debiting Credit Card Expense for the amount of the charge ($105), and crediting Sales for the total sales amount ($3,500). This reflects the reduction in cash received due to the credit card charge and records the expense while also recording the full sales amount.

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