A customer purchased a $2,000 item at appliance world, paying with a credit card. appliance world is charged a 2% fee by the credit card company. when recording this sale, appliance world would:

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04-04-2019
Business

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A customer purchased a $2,000 item at appliance world, paying with a credit card. appliance world is charged a 2% fee by the credit card company. when recording this sale, appliance world would:

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MrsSeifried MrsSeifried · Answer 1 · 2019-04-04T02:31:48+02:00

MrsSeifried MrsSeifried

04-04-2019

They will make an entry that is a debit to Cash and Credit Card Expense and a credit to Sales.

The first step is to calculate how much the credit card expense will be. $2,000 x .02 = $40.

Knowing that the credit card expense is $40, Appliance World will record an entry that is a debit to Cash for $1,960, a debit to Credit Card Expense for $40 and a credit to Sales for $2,000.

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