Journalize: Recorded credit card sales of $110,000 net processor fee of 2%

Answer 1

To journalize the recorded credit card sales of $110,000 with a net processor fee of 2%, you need to calculate the processor fee and then make the appropriate journal entry.

1. Calculate the processor fee:

   • Processor fee = 2% of $110,000 = 0.02 * $110,000 = $2,200.

2. Calculate the net sales amount:

   • Net sales = Total sales - Processor fee = $110,000 - $2,200 = $107,800.

3. Journal Entry:

   • You will record the total credit card sales as revenue and also recognize the expense for the processor fee.

Here’s how the journal entry would look:

Date | Account | Debit | Credit ---------|--------------------------------------|-------------|------------- | Cash (or Accounts Receivable) | $107,800 | | Credit Card Expense (Processor Fee) | $2,200 | | Sales Revenue | | $110,000

Explanation:

• Cash (or Accounts Receivable) is debited for the net amount received after the processor fee.
• The Credit Card Expense is debited to record the fee charged by the processor.
• Sales Revenue is credited for the total amount of sales recorded.

This gives you a complete view of the transaction in your accounting records.