McGregor Company allows customers to pay with credit cards. The credit card company charges McGregor 3% of the sale. When a customer uses a credit card to pay McGregor $200 for services provided, McGregor would:
A) Debit Cash for $200.
B) Credit Service Revenue for $194.
C) Debit Service Fee Expense for $6.
D) Credit Service Revenue for $206.
Answer: Debit Service Fee Expense for $6.
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