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Mackenzie Company sold $580 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 4.0% s
Giorgio Italian Market bought $4,600 worth of merchandise from Food Suppliers and signed a 90-day, 6% promissory note for the
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Answer #1

Dear student, only one question is allowed at a time. I am answering the first question

Since the payments are received immediately from credit card company, there is no question of accounts receivable

Total Sales value = $580

Service charge percentage = 4%

Credit card expenses = Total Sales Value x Service Charge percentage

= $580 x 4%

= $23.20

Net amount received from credit card company

= Total sales value – Credit card expenses

= $580 - $23.20

= $556.8

The Journal entry will be as follows

Date Particulars Amount Dr Amount Cr
xxxx Cash or Bank 556.8
Credit card expenses 23.2
       Sales 580
( Being sales made through card )

So, as per above discussion, option D is the correct option

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