Ask Question
5 July, 14:45

A landscaping company accepts MasterCard as payment for $1,000 worth of services. MasterCard charges a service fee of 2 percent. Which of the following would be recorded by the store? Multiple Choice Debit $20 to Service Fee Expense Debit $1,000 to Cash Credit $980 to Service Revenue Credit $980 to Cash

+3
Answers (1)
  1. 5 July, 14:53
    0
    Dr Cash 1020

    Cr Service revenue 1000

    Cr Service fee 20

    Explanation:

    Service fee is expense of individual who is purchasing not store's expense.

    - Total cash received by store is $ 1020 because 2% is service charges by master card, its is income of master card not store so store will treat as liability.

    The only revenue of store is $1000.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A landscaping company accepts MasterCard as payment for $1,000 worth of services. MasterCard charges a service fee of 2 percent. Which of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers