Credit Card Sales

Credit Card Sales - they usually charge companies between 2...

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Credit Card Sales Retail companies , which sell merchandise in small quantities directly to consumers, often receive a  significant portion of their revenue through credit card sales. Some credit card receipts, specifically  those involving credit cards issued by banks, are deposited along with cash and checks made  payable to the company. The company receives cash for these credit card sales immediately.  Because banks that issue credit cards to customers handle billing, collections, and related expenses, 
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Unformatted text preview: they usually charge companies between 2% and 5% of the sales price. This fee is deducted when the receipts are deposited in the company's bank account, so these credit card receipts are slightly more complicated to record than other types of cash deposits. If a company deposits credit card receipts totaling $1,000 and the fee is 3%, the company makes a compound entry that debits cash for $970, debits credit card expense for $30 (3% of $1,000), and credits sales for $1,000....
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