Target Allows Customers to Use MasterCard B) C) D)None of the Above

question 30

Multiple Choice

Target allows customers to use MasterCard.It reports Sales revenue of $24 000 for the week.MasterCard charges Target a 3% fee.The journal entry for this transaction would be:

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Sales revenue } & 24000 & \\
• \hline \text { Card fee expense } & 720 & \\
• \hline \text { Cash } & & 24720 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 23280 & \\
• \hline \text { Card fee expense } & 720 & \\
• \hline \text { Sales revenue } & & 24000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 24000 & \\
• \hline \text { Card fee expense } & 720 & \\
• \hline \text { Sales revenue } & & 24720 \\
• \hline
• \end{array}\]
• D)None of the above.

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Definitions:

Marginal Rate

The amount of tax applied to an additional dollar of income, often used in the context of progressive tax systems.

Average Rate

A measure used in finance to represent the typical amount of return or rate over a given period.

Fixed Rate

An interest rate that remains constant over the lifetime of a loan or financial instrument.

Average Tax Rates

It reflects the fraction of total income that is paid in taxes, calculated by dividing the total amount of taxes paid by the total income.