Schofield Retailers Accepted $60,000 of Silver Bank MasterCard Credit Card

question 148

Multiple Choice

Schofield Retailers accepted $60,000 of Silver Bank MasterCard credit card charges for merchandise sold on August 1. Silver Bank charges 4% for its credit card use. The entry to record this transaction by Schofield Retailers will include a credit to Sales Revenue of $60,000 and a debit(s) to

• A) Cash for $57,600 and Service Charge Expense for $2,400.
• B) Accounts receivable for $57,600 and Service Charge Expense for $2,400.
• C) Cash for $60,000.
• D) Accounts Receivable for $60,000.

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Definitions:

Personal Loan

An unsecured loan given to an individual based on their creditworthiness, without requiring collateral, typically used for personal expenses.

Capital

Financial assets or the financial value of assets, such as cash and goods, used to fund a company or produce more wealth.

Permanent Investment

Investments a company intends to hold for a long duration, typically exceeding one year, for earning dividends or interest income.

Owner's Equity

The total value remaining in a business after all liabilities are subtracted from assets; also known as shareholders' equity.