Which of the following correctly shows the effects of the sale on July 7? 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 July 7? 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

The sale increases assets (accounts receivable - credit card) by $582, the net amount that will be collected from the credit card company, increases revenue by $600, and increases expenses (credit card expense) by $18 (3% of $600). Net income and equity increase by $582, and the statement of cash flows is unaffecte

Which of the Following Correctly Shows the Effects of the Sale