Stelloh's Berry Farm Accepted a Bank-Issued Credit Card in Payment

question 44

Multiple Choice

Stelloh's Berry Farm accepted a bank-issued credit card in payment of a $1,200 sales transaction.Stelloh's bank charges 1% to process the transaction.The journal entry to record the sales transaction will include:

• A)a debit to Accounts Receivable for $1,188 and a credit to Sales Revenue for $1,188.
• B)a debit to Cash for $1,200 and a credit to Sales Revenue for $1,200.
• C)a debit to Cash for $1,188,a debit to Credit Card Discount Expense for $12 and a credit to Sales Revenue for $1,200.
• D)a debit to Accounts Receivable for $1,200,a debit to Credit Card Revenue for $12 and a credit to Sales Revenue for $1,212.

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Definitions:

Expected Value

The predicted average outcome of a probabilistic event, accounting for all possible outcomes and their probabilities.

Stock Price

The value of a single share of a company's stock, determined by the balance of buying and selling activity in the stock market.

Probability

The measure of the likelihood that an event will occur, quantified between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Expected Value

The expected value is a statistical concept that calculates the mean of all possible values of a random variable, weighted by their respective probabilities.