Minch Grinch Company sells 2 cats in a hat to a customer for $10,000, and allows the customer to pay on credit card. The credit card company charges a 2% fee. What accounts will be affected by the transaction?

Debit to accounts receivable $9,800, Debit to credit card Discount $200 and credit to sales revenue $10,000

Explanation:

Given that the credit card charges 2%; then the discount rate =

= 0.02 × 10,000

= 200

The account receivable = $10,000 - $200

= $9,800

From the foregoing, it is obvious that the sale revenue would not be affected by this transaction. SO, the sale revenue = $10,000

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explanation:

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