Glebe Company Accepted a Credit Card Account Receivable in Exchange

question 121

Multiple Choice

Glebe Company accepted a credit card account receivable in exchange for $1,100 of services provided to a customer.The credit card company charges a 5% service charge.The collection of cash from the credit card company when it settles the account receivable balance will act to:

• A)increase assets by $1,045.
• B)decrease assets and equity by $55.
• C)increase assets by $1,100.
• D)none of these answer choices are correct.

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Definitions:

Anglo-American Colonies

Refers to colonies in North America that were under British rule, which later formed the United States of America.

English Civil War

A series of armed conflicts and political machinations between Parliamentarians ("Roundheads") and Royalists ("Cavaliers") in England in the mid-17th century, leading to the trial and execution of Charles I, the dictatorship of Oliver Cromwell, and eventually the restoration of the monarchy.

Magna Carta

A charter of liberties agreed to by King John of England in 1215, considered a foundational document establishing principles of legal authority and individual rights.

Liberties

The state in which one lives without facing harsh restrictions from those in authority on their personal behaviors, lifestyle, or political leanings.