On May 10, Renn Company sold merchandise for $3,700 and accepted the customer\'s

Question

On May 10, Renn Company sold merchandise for $3,700 and accepted the customer's First Business Bank MasterCard. At the end of the day, the First Business Bank MasterCard receipts were deposited in the company's bank account. First Business Bank charges a 4.8% service charge for credit card sales. Prepare the entry on Renn Company's books to record the sale of merchandise. (Round answers to 0 decimal places, e.g. 825. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Explanation / Answer

10 May        Customer A/c                                                   $3700

                         To Sale A/c                                                     $3700

              (Being Credit sale made)

10 May        Bank A/c                                                      $3522.4         

                   Business Bank Charges A/c                          $177.6

                            To Customer A/c                                                       $3700

            (Being Amount Received from Customer)

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