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. Ed
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