Cushion Sports Accepted a Credit Card Account Receivable in Exchange

question 183

Multiple Choice

Cushion Sports accepted a credit card account receivable in exchange for $5,000 of services provided to a customer.The credit card company charges a 5% service charge.Recording the transaction in the company's accounting records will have what effect on the accounting equation?

• A) Increase assets and equity by $4,750
• B) Decrease assets and equity by $250
• C) Increase assets by $5,000
• D) Increase equity by $5,000

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Definitions:

Supporting

The act of providing assistance or encouragement to others, often involving emotional, financial, or practical aid.

Demanding

Describes individuals or situations that require a high level of effort, attention, or resources, often leading to stress or challenges.

Corporal Punishment

involves the physical disciplining of an individual, usually a child, by an authority figure, through methods such as spanking or slapping.

Middle-Class Parents

Parents who typically belong to the socioeconomic middle stratum, often characterized by moderate income, education, and occupational status.