Question: Cade's Computers sold a computer to Sally for $500, plus sales tax of 7%. Sally paid with her Hi-Debt Credit card. Per the agreement between

Cade's Computers sold a computer to Sally for $500, plus sales tax of 7%. Sally paid with her Hi-Debt Credit card. Per the agreement between Cade's Computers and Hi-Debt Credit, the transaction fee is 2%. Sally pays her credit card bill in full every month.

Determine the journal entry for Cade's Computers to record this sale:

dr-Cash 535.00

cr-Sales Tax Payable 35.00

cr-Sales 500.00

dr-Cash 535.00

dr-Credit Card Expense 10.70

cr-Sales 545.70

dr-Cash 524.30

dr-Credit Card Expense 10.70

cr-Sales Tax Payable 35.00

cr-Sales 500.00

dr-Cash 524.30

dr-Credit Card Expense 10.70

cr-Sales 535.00

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