ervis accepts all major bank credit cards, including those issued by Northern Bank (NB), which assesses a 4.5% charge on sales for using its card. On June 28, Jervis had $5,800 in NB Card credit sales. What entry should Jervis make on June 28 to record the deposit

Question

Business

Tania Phelps

1 November, 06:51

ervis accepts all major bank credit cards, including those issued by Northern Bank (NB), which assesses a 4.5% charge on sales for using its card. On June 28, Jervis had $5,800 in NB Card credit sales. What entry should Jervis make on June 28 to record the deposit

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Answers (1)

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Fletcher Quinn · Answer 1

Preparation of the journal entry that Jervis should make on June 28 to record the deposit

Dr Cash ($5,800 - $261) $ $5,539

Dr Credit card expense ($5,800 X 4.5%) $ 261

Cr Sales $5,800

(5,539+261)

Explanation:

Since Jervis assesses a 4.5% charge on sales for using its card in which On June 28, he had $5,800 in NB Card credit sales this means we have to Debit Cash with $5,539 ($5,800 - $261) and as well Debit Credit card expense with $261 ($5,800 X 4.5%) while we Credit Sales with $5,800 (5,539+261)