TextbooksCom Accepts VISA for Payments of Purchases Made by Students

question 66

Multiple Choice

Textbooks.com accepts VISA for payments of purchases made by students.The credit card drafts are deposited directly in a bank account.VISA charges a 2% collection fee.Credit card drafts totaling $12,000 are deposited during September.The effect on the accounting equation to record the sales and deposits will include

• A) An increase in Cash for $12,000
• B) An increase to Sales for $11,760
• C) An increase to Accounts Receivable for $11,760
• D) An increase in Collection Fee Expense for $240

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Definitions:

Low-Income Countries

Nations with a low gross national income per capita, often characterized by high levels of poverty and limited economic development.

Mumbai

A populous city on India's west coast, known for its financial and entertainment (Bollywood) industry, as well as being one of the world's largest cities.

Farm Output

The total quantity of agricultural products produced by a farm or in a specific area within a given period.

Global South

A term often used to describe countries considered to be in a position of socio-economic and political disadvantage, primarily those in the Southern Hemisphere.