Jervis Accepts All Major Bank Credit Cards, Including Those Issued

Multiple Choice

Jervis accepts all major bank credit cards, including those issued by Northern Bank (NB) , which assesses a 3% charge on sales for using its card. On June 28, Jervis had $3,500 in NB Card credit sales. What entry should Jervis make on June 28 to record the deposit?

A) Debit Accounts Receivable $3,500; credit Sales $3,500
B) Debit Cash $3,500; credit Sales $3,500
C) Debit Accounts Receivable $3,395; debit Credit Card Expense $105; credit Sales $3,500
D) Debit Cash $3,395; debit Credit Card Expense $105; credit Sales $3,500
E) Debit Cash $3,605; credit Credit Card Expense $105; credit Sales $3,500