Question

UV5 LUGLU el queLUI SUVES SUSC. Question 37 2 points Save Answer Simonic Retailers accepted $90,000 of Citibank Visa credit card charges for merchandise sold on July 1. Citibank charges 4% for its credit card use. The entry to record this transaction by Simonic Retailers will include a credit to Sales Revenue of $90,000 and a debit(s) to Cash $86,400 and Interest Expense $3,600. Accounts Receivable $86,400 and Service Charge Expense $3,600. Accounts Receivable $90,000. Cash $86,400 and Service Charge Expense $3,600.

Answer 1

Ans : Option D, cash $ 86,400 and service charge expense $ 3,600.

Service charge expenses = $ 90,000 * 4 %

= $ 3,600.

debit cash by (90000-3600) and service charge expense by 3600 and credit revenue by $ 90,000