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Posted by bono9763@yahoo.com on April 12, 2007, 6:32 pm
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cascadiades...@comcast.net wrote:
> I just started a sole proprietorship selling products over
> the web
>
> Customer pays $100 for product. Credit Card processor takes
> 3% off the top and $97 gets deposited in my account. In
> addition, Credit Card processor charges a small flat monthly
> charge to maintain the account.
>
> Do I report $100 as income and $3 + monthly flat fee as an
> expense?
>
> Or do I report $97 as income and do not report the $3 as an
> expense, only reporting the monthly fee as an expense.
>
> I'm confused because I never receive the gross selling
> amount; only the net amount after the 3% is taken.
Report the $100 as income and the $3 plus monthly flat fee
as fees paid.
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