Which of the following correctly shows the effects of the sale on March 1? Assume that the credit card fee is recorded on the date of sale.
A) Option A
B) Option B
C) Option C
D) Option D

Question

Which of the following correctly shows the effects of the sale on March 1? Assume that the credit card fee is recorded on the date of sale. 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Quizplus · Accepted Answer

Option C correctly shows the effects of the sale on March 1, with the sale amount recorded as revenue, the credit card fee recorded as an expense, and the net amount recorded as cash received. Option A is incorrect because it does not account for the credit card fee. Option B is incorrect because it records the credit card fee on March 2 instead of on the date of sale. Option D is incorrect because it includes an additional cash receipt for the credit card fee, which is not accurate.

Which of the Following Correctly Shows the Effects of the Sale