MacKenzie Company Sold $180 of Merchandise to a Customer Who

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 in approximately 5 days.The journal entry to record the collection from the credit card company would be:

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