Chauky's Catering Accepted a Bank-Issued Credit Card in Payment of a $4,000

question 57

Multiple Choice

Chauky's Catering accepted a bank-issued credit card in payment of a $4,000 sales transaction. Chauky's bank charges 3% to process the transaction. The journal entry to record the sales transaction will include:

• A)a credit to Sales Revenue for $3,880.
• B)a debit to Cash for $4,000.
• C)a debit to Financing Expense for $120.
• D)all of these.

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Definitions:

Ethical Audit

A systematic evaluation of an organization's ethical policies, practices, and culture to assess compliance with ethical standards and identify areas for improvement.

Trust and Confidence

The belief in the reliability, truth, and ability of someone or something, leading to a sense of security and assurance.

Duty of Loyalty

An obligation of employees or directors to act in the best interest of their company or shareholders.