Anchor Sales Accepts Credit Cards from Its Customers $$\begin{array} { | l | l | l | } \hline \quad\quad& \quad&\quad \\\hline & & \\\hline\end{array}$$

question 162

Essay

Anchor Sales accepts credit cards from its customers.Assume Anchor makes a sale of $100 and the processor charges a 3% fee.Assume that the credit card processing company uses the gross method of depositing funds.This method employs a sequence of two separate journal entries to record the revenue transaction and settlement with the processor.Please provide the first journal entry made by Anchor to record the sales revenue.
$$\begin{array} { | l | l | l | } \hline \quad\quad& \quad&\quad \\\hline & & \\\hline\end{array}$$

---

Definitions:

Profit Margin

A financial measurement that calculates the percentage of profit a company makes from its total revenue.

Profit Margin

A financial metric expressing the percentage of revenue that exceeds costs and expenses, indicating a company's profitability.

Required Accounting Return

A target return a project or investment must achieve in accounting terms, such as return on investment or return on equity, to be considered viable.

Depreciated Straight-line

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, representing its gradual loss of value.