Jeff Retailers accepted $75,000 of Citibank Visa credit card charges for merchandise sold on July 1. Citibank charges 2% for its credit card use. The entry to record this transaction by Jeff Retailers will include a credit to Sales Revenue of $75,000 and a debit(s) to Accounts Receivable $73,500 and Service Charge Expense $1,500. Accounts Receivable $75,000. Cash $73,500 and Service Charge Expense $1,50. Cash $73,500 and Interest Expense $1,500.

Jeff Retailers accepted $75,000 of Citibank Visa credit card charges for merchandise sold on July 1. Citibank charges 2% for its credit card use. The entry to record this transaction by Jeff Retailers will include a credit to Sales Revenue of $75,000 and a debit(s) to Accounts Receivable $73,500 and Service Charge Expense $1,500. Accounts Receivable $75,000. Cash $73,500 and Service Charge Expense $1,50. Cash $73,500 and Interest Expense $1,500.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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