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15 March, 23:50

On May 10, Blue Spruce Corp. sold merchandise for $39,000 and accepted the customer's Best Business Bank MasterCard. At the end of the day, the Best Business Bank MasterCard receipts were deposited in the company's bank account. Best Business Bank charges a 3.8% service charge for credit card sales. Prepare the entry on Blue Spruce Corp.'s books to record the sale of merchandise.

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  1. 15 March, 23:59
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    The Journal entry is as follows:

    On May 10,

    Cash A/c Dr. $37,518

    Service Charge Expense A/c Dr. $1,482

    To Sales Revenue $39,000

    (To record the sale of merchandise)

    Working notes:

    Service Charge Expense:

    = Sales Revenue * 3.8% service charge for credit card sales

    = $39,000 * 3.8%

    = $1,482
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