Regarding the Gross Method of Handling Credit and Debit Card

question 26

Multiple Choice

Regarding the gross method of handling credit and debit card transactions,which of the following statements is correct?

• A) The total sale amount is deposited on the date of the actual sale.
• B) The processing fees for all transactions processed for the month are deducted from the company's bank account, often on the last day of the month.
• C) On the date of sale, the Sales Revenue account is credited for the amount of sale less the processing fee.
• D) The journal entry on the date of sale is identical to a journal entry made for a sale on account.

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Definitions:

Quota

A restriction on the number of units of a particular product that can be imported into a country.

Embargo

A prohibition on trade in a particular product.