Question

Brinker accepts all major bank credit cards, including First Savings Bank's, which assesses a 2.5% charge on sales for using its card. On May 26, Brinker had $4,800 in First Savings Bank Card credit sales. What entry should Brinker make on May 26 to record the deposit?

Answer 1

Answer:

Explanation:

The journal entry is shown below:

Cash A/c Dr $4,680

Credit card expenses A/c Dr $120     ($4,800 × 2.5%)

        To Sales $4,800

(Being the deposit is recorded and the remaining balance is debited to the cash account)

We debited the cash and the credit card expenses account and credited the sales account so that proper entry would be recorded.