If a Company Made a $5,500 Credit Card Transaction and the Credit

question 40

Multiple Choice

If a company made a $5,500 credit card transaction and the credit card discount was 4%, what is the correct entry to accounts receivable?

• A) Dr. Accounts Receivable $5,720
• B) Dr. Accounts Receivable $5,280
• C) Cr. Accounts Receivable $5,720
• D) Cr. Accounts Receivable $5,280

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Definitions:

Capital Credit

Credits or allocations given to cooperative members based on their use or purchase levels, representing their ownership equity in the cooperative.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in any given jurisdiction.

Book Values

The value of an asset or liability according to a company's balance sheet, accounting for depreciation or amortization.

Capital Interest

Capital Interest refers to the interest on investment that is considered part of the cost of a fixed asset or is capitalized.