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10 February, 00:11

Exercise 8-9 on july 4, crane company accepts a visa card for a $50 dinner bill. visa charges a 2% service fee. prepare the entry on crane company's books related to the transaction. (credit account titles are automatically indented when amount is entered. do not indent manually.)

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  1. 10 February, 00:49
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    cash $49

    credit card expenses $1

    sales revenues $50

    Credit card sales of $50 result in a credit (increase) to sales revenues of $50. The credit card fee equals ($50) (0.02) = $1 and should be recorded as a debit (increase) to credit card expense. The amount of cash received is the amount of the sales ($50) less the credit card fee ($1) and should be debited (increase) to cash.
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