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

Question

Business

Tabitha Hodges

17 August, 06:39

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

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Answers (1)

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Angela Hogan · Answer 1

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.