Saturday, October 10, 2020

McGregor Company allows customers to pay with credit cards. The credit card company charges McGregor 3% of the sale. When a customer uses a credit card to pay McGregor $200 for services provided, McGregor would:

McGregor Company allows customers to pay with credit cards. The credit card company charges McGregor 3% of the sale. When a customer uses a credit card to pay McGregor $200 for services provided, McGregor would:


A) Debit Cash for $200.

B) Credit Service Revenue for $194.

C) Debit Service Fee Expense for $6.

D) Credit Service Revenue for $206.


Answer: Debit Service Fee Expense for $6.

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