MacKenzie Company Sold $180 of Merchandise to a Customer Who

question 186

Multiple Choice

MacKenzie Company sold $180 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 4% service charge for sales on its credit cards. MacKenzie electronically remits the credit card sales receipts to the credit card company and receives payment immediately. The journal entry to record this sale transaction would be:

• A) Debit Cash of $180 and credit Accounts Receivable-Regional $180.
• B) Debit Cash $172.80 and credit Sales $172.80.
• C) Debit Accounts Receivable-Regional $172.80; debit Credit Card Expense $7.20 and credit Sales $180.
• D) Debit Cash of $180 and credit Sales $180.
• E) Debit Cash $172.80; debit Credit Card Expense $7.20 and credit Sales $180.

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Definitions:

Logistics

The management of the flow of goods, information, and resources between the point of origin and the point of consumption in order to meet the requirements of customers or corporations.

Supply Chain Performance

An evaluation of how well a supply chain achieves its goals, often measured through metrics like efficiency, speed, cost, and reliability.

Time

The indefinite continued progress of existence and events in the past, present, and future regarded as a whole.

Quantity

The amount, size, or number of something, which can be measured or counted.