During September Its First Month of Operations Sailor Tutoring Service

question 131

Multiple Choice

During September its first month of operations Sailor Tutoring Service Inc.performed SAT prep tutoring services and billed customers $1200.The company collected 75% of the amount owed.The combined effect of these two transactions on Sailor's tabular analysis is:

• A)Increase Cash by $900 increase Accounts Receivable $300 and increase Revenue by $1200.
• B)Increase Cash by $900 and increase Revenue by $900.
• C)Decrease Accounts Payable by $300 increase Revenue by $900 and increase Cash by $1200.
• D)Increase Accounts Accounts Receivable $1200 and increase Revenue $1200.

---

Definitions:

Family Dollar

A popular chain of variety stores in the United States offering a wide range of products at discounted prices, catering to budget-conscious consumers.

Dollar General

A discount retailer in the United States known for selling a wide range of products at low prices.

Warehouse Club

A membership-based retail store offering a wide variety of merchandise, often in bulk and at lower prices than other retailers.

Outlet Store

A retail store that sells products directly from one or more manufacturers at reduced prices, often goods that are overproduced, discontinued, or from previous seasons.