Question 1 On May 10, Waterway Industries sold merchandise for $35,000 and accep

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Question 1 On May 10, Waterway Industries sold merchandise for $35,000 and accepted the customer's Best Business Bank MasterCard. At the end of the day, the Best Business Bank MasterCard receipts were deposited in the company's bank account. Best Business Bank charges a 3.4% service charge for credit card sales. Prepare the entry on Waterway Industries's books to record the sale of merchandise. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit May 10

Explanation / Answer

Note:-   Service charge expenses are on depositing Mastercard receipt in Bank

Date Accounts title and explanation Dr. Cr. May 10 Cash [35000 - 1190] 33810 Service charge expense [35000*3.4%] 1190 To sales Revenue 35000 [Being sale of merchandise recorded]

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